MELBOURNE, March 18 (Reuters) - Australia is on track to pull in a record A$299 billion ($182.69 billion) from resource exports in the current financial year, as miners like BHP Group BHP.AX and Fortescue FMG.AX churn out more iron ore amid a drop in the Australian dollar, the Department of Industry said on Wednesday.
Iron ore is expected to account for nearly a third of Australia's revenue from the sector for the year, after prices were pumped up by supply disruptions in Brazil and a cyclone off the coast of its iron ore producing hub in Western Australia.
Australia accounts for more than half of global production of the steel making ingredient.
A reversal in dollar fortunes however and normalisation of commodity prices are likely to dampen export earnings out to 2024–25, the department said in its March quarterly report.
The outbreak of COVID-19 is expected to impact Chinese and global growth in the first half of 2020, but Australia expects the effects to have largely played out by June 2020, though the situation remains "rapidly evolving," it said.
A surge in gold mine investment, fuelled by record high Australian dollar gold prices is also expected to see Australia leapfrog China to regain its crown as the world's biggest gold producer in 2021, it said.
The resources sector accounted for 8.7% of Australia's gross domestic product in 2019, and employed more than 250,000 people, it said.
Massive investment in liquefied natural gas saw Australia become the world's largest gas exporter at points in 2019, while other commodities including copper, nickel and lithium hold strong prospects over the medium term, it said.
($1 = 1.6367 Australian dollars)