Fed: ABARE cuts export earnings forecast due drought, =3

AAP General News (Australia)
12-06-2007
Fed: ABARE cuts export earnings forecast due drought, =3

ABARE said its mineral energy exports forecasts are slightly less than it predicted
in September because of the negative effect on earnings of the Australian dollar and some
weakening in metals prices.

But Mr Glyde said benefits from high levels of investment in the mining industry were
apparent with the volume of mineral-resources production and exports increasing.

Metals and other minerals are forecast to contribute nearly $68 billion in 2007-08,
a decline of more than one per cent from the previous year.

"The fall reflects the effects of lower prices for a number of metals and an assumed
higher Australian dollar," he said.

But earnings from energy exports are forecast to jump by seven per cent to $42 billion,
supported by an increase in the value of thermal coal, LNG, uranium, crude oil and related
petroleum products exports.

AAP cb/rl/lh/bwl

KEYWORD: ABARE 3 CANBERRA

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