According to the Australian Bureau of Agricultural and Resource Economics (ABARE), next financial year is going to be boom time for the miners. ABARE expects the mining and energy exports to come to about $170 billion in 2010-11.
This is about 28% higher than what it was last year. This increase is likely to come about due to the rise in coal and iron prices. ABARE attributes the rise to the impact of Chinese demand which scores over the debt crisis in Europe.
The iron ore prices are likely to rise highest with an estimated 47% increase in 2010-11. The price of the mineral has almost tripled since the year 2005. Coal prices are also forecast to rise about 40%.
The key companies to gain in this scenario will be Rio Tinto, BHP Billiton, and Fortescue Metals Group. The proposed RSPT is also likely to raise $12 billion in its first two years from 2012 for the government.