AUSTRALIA'S BIG YEAR AHEAD

AUSTRALIAN MINING TAKES A LOOK AT THE 2025 OUTLOOK FOR SOME OF THE COUNTRY'S MOST VITAL COMMODITIES.

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Australia’s mining sector is showing no signs of slowing down as the industry readies for another busy year.

The Federal Government’s ‘Resources and Energy Quarterly’ (REQ) from December 2024 is predicting the next couple of years to be promising ones for the sector, with strong demand and growth expected across several key commodities.

Iron ore

Australia is the world’s largest iron ore producer and the commodity is perhaps one of the most integral parts of the Australian mining sector, with 892 million tonnes exported in 2023.

Over the second half of 2024, Australian iron ore export volumes continued to increase, and are expected to rise steadily, increasing by around 1.7 per cent a year over the next two years, demonstrating an improvement in productivity and the ongoing ramp-up of new mines.

However, iron ore export earnings are set to drop due to lower prices projected over the outlook period, from $138 billion in 2023–24 to $108 billion in 2024–25 and $96 billion in 2025–26.

Despite falling steel demand, China’s iron ore imports have remained strong, rising 6.8 per cent in the year to September 2024.

China’s iron ore imports from Australia increased by three per cent year-on-year in the September quarter 2024, down from a 6.6 per cent year-onyear rise in the June quarter.

Renewed stimulus measures from China, including greater investment in its ailing property sector, will also provide support for steel and iron ore prices in the coming years.

“As the world’s largest exporter of key commodities required for steel production, Australia is well placed to benefit from the demand growth projected in global markets in 2025 and 2026,” the REQ said.

“Australia’s production volumes are forecast to increase by 2.6 per cent a year over the next two years, to an estimated 1.01 billion tonnes by 2025–26.”