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Australia may export 425 million tonnes of iron ore in 2011

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Bloomberg reported that Australia, the world's largest iron ore exporter, will export 5.5% more of the steelmaking raw material this year as BHP Billiton Limited and Rio Tinto Group increase output, taking advantage of higher prices.

The Canberra based Australian Bureau of Agricultural and Resource Economics and Sciences said that Australia may ship 425 million tonnes in 2011 and 462 million tonnes in 2012. The nation's copper and nickel exports will also climb as global consumption increases.

ABARES said that "Growth in steel consumption in developing Asian economies will form the backbone of world steel demand growth, reflecting the development of infrastructure and rising incomes in these economies. Prices for both iron ore and metallurgical coal are forecast to remain well above historical averages."

It added that Australia's export earnings from iron ore may be 64% higher this fiscal year at AUD 57 billion. That may gain to AUD 68 billion in the year ending June 30th 2016. Total sales from metals and minerals may gain 12% to AUD 125.8 billion this financial year.

ABARES said that exports of iron ore are projected to increase at an average annual rate of 7% to 2016 to 599 million tonnes. By 2016, Australian exports are projected to account for 43% of world trade. Exports may rise to 599 million tonnes by 2016.

It added that iron ore prices may average USD 149 a tonne in 2011 as compared with USD 112 a tonne in 2010. Prices will decline as companies including BHP, Rio and Vale SA, expand operations. Iron ore will average USD 93 a tonne by 2016.

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