Australia's iron ore export to rise in 2004 fiscal

Australia’s iron ore export to rise in 2004 fiscal

Australia's iron ore exports are expected to soar by 11.6% or 25 million tons to 206 million tons in the fiscal year ending on June 30, 2004 due to the strong demand coming from China. Moreover, iron ore exports are forecasted to rise by 16 million tons to 222 million tons in 2005 fiscal, according to Australian Bureau of Agriculture & Resource Economics. The export increase will be supported by higher production of BHP Billiton Ltd., Mining Area C and Yandi operations. Rio Tinto Ltd's West Angelas and Yandicoogina mines are also expected to increase output. However, although the export volume increases, the value of offshore sales is expected to rise only by 1% to amount to around A$5.4 billion as the stronger Australian Dollar partially offsets the benefit of higher US Dollar prices. In 2005 fiscal, export values of iron ore are forecasted to increase by 22% to A$6.6 billion with the positive affect of higher volumes and negotiated prices.