Australia's Resource Exports to Dip Slightly in 2025-26, but Iron Ore Remains Top Earner
Australia's resource and energy export earnings are projected to decrease slightly to $369 billion in 2025-26, with metallurgical coal exports expected to decline to $36 billion. Meanwhile, iron remains the top export, making up 25% of all resource and energy commodities.
The decrease in export earnings is primarily due to softening international prices, despite steady demand and growing export volumes across key commodities. Iron export values are expected to decrease to $113 billion in 2025-26 due to price pressures, despite volume increases. However, lithium and copper exports are forecast to rise, with lithium earnings projected to reach over $6.1 billion in 2026-27 and copper exports reaching $16 billion in the same period.
Australia's dominance in iron exports can be attributed to several factors, including abundant high-quality iron reserves, significant infrastructure investments, low production costs, a stable political environment, strong Asian demand, and technological advancements in the industry.
While Australia's overall resource and energy export earnings are projected to decrease slightly, the export mix is becoming more balanced, with traditional strengths maintained and emerging commodities gaining importance. Notably, gold exports are forecast to increase significantly, rising by $12 billion to reach $60 billion in 2025-26, making it Australia's second-largest resource export after iron.
