According to ABARE’s latest report, earnings from Australia’s commodity exports are forecast to increase by 15% to a record of $95 billion in 2004/05.

The forecast increase in mineral and energy prices on world markets and higher export shipments are expected to more than offset an assumed appreciation in the Australian dollar, especially against the US dollar.

ABARE said current investment intentions in the Australian mineral resources sector, as reflected in the record number and value of minerals and energy projects committed to or under construction, bode well for the sector’s growth over the next few years.

“Despite the existence of a number of projects at less advanced planning stages that are under active consideration for development, a return to higher levels of exploration expenditure may be necessary to secure a sufficient resource base to enable continued sectoral growth over the longer term,” ABARE said.