PO Box 3043
Murrumbateman, NSW 2582, Australia
Australia’s mining and energy industries are among the most important pillars of its economy and global economic engagement. As major contributors to GDP, trade, and investment, these sectors underpin national wealth while serving as critical enablers of global industrial supply chains and the energy transition. With abundant natural resources, close trade ties to Asia, and a reputation as a stable and reliable exporter, Australia’s role in the global mining and energy landscape continues to evolve, especially as the world moves towards net-zero emissions.
Mining has long been a defining feature of Australia’s economy. From the gold rushes of the 1850s to today’s multibillion-dollar export industry, mining remains central to national prosperity.
Mining is Australia’s largest export industry, and accounts for approximately 2/3 of merchandise export earnings.
In 2023, the sector contributed around 13.6% of Australia’s GDP, supporting growth, government revenue, and household incomes.
Over the past decade, resource exports generated more than $2.4 trillion in earnings, with significant returns captured domestically:
In 2020, the economic benefits of the mining expansion were especially apparent. Real GDP would have been 13% lower without the industry’s growth, and the average household was $14,800 better off, with real wages rising by 8%. The sector also supports a wide network of suppliers and service providers, creating broader economic spillovers.
Australia ranks as the fourth largest mining country globally, after China, the United States, and Russia. Its geological endowment makes it a vital supplier of key minerals and energy resources:
Lithium: Australia is the world’s largest producer of lithium spodumene, accounting for 48% of global lithium extraction in 2023.
Iron Ore: Australia is the world’s largest producer of iron ore, producing 40% of global output. Australian iron ore feeds steel industries worldwide, especially China - which takes 85% of Australia’s iron ore exports.
Gold, Nickel, Lead, Zinc: Among the global top five producers.
Critical minerals: Australia has significant reserves of critical minerals such as rare earths, manganese, and antimony, which are essential to the green energy transition
Uranium: Holds the largest known resources - 28% - and is the third largest producer.
Black Coal: In 2022, Australia was the second-largest coal exporter, with 26% of global export share. Australia ships high-quality metallurgical coal for steelmaking and thermal coal for power generation, mostly to Asian markets.
LNG: In 2022, Australia was the second-largest LNG exporter, supplying energy-importing allies like Japan and Korea. As of 2024, China is Australia’s largest LNG export market.
With over 80% of the continent still unexplored for minerals, Australia’s geological potential remains significant.
Australia's mining and energy industries are profoundly integrated into the global economy, with a significant portion of their output destined for international markets. In 2024, major destinations included China, Japan, India, South Korea, and other regional economies. In 2022-23, resource exports reached a record of A$455 billion, about 66% of Australian export revenue.
China: Australia’s largest trading partner, China accounted for 32.5% of exports in 2023 and remains heavily dependent on Australian iron ore, LNG, and coking coal. In 2024, China became Australia’s largest LNG market and a major buyer of Australian lithium, importing A$11.7 billion worth in just the first half of 2023.
Japan: A longstanding and strategic partner, Japan was historically Australia’s top LNG market and remains a leading importer of coal and iron ore. In 2024, Japan onsold 600 PJ of Australian LNG, reflecting its central role in regional energy trade, while also receiving nearly 34% of Australia's thermal coal exports.
South Korea: A key market for Australian iron ore, coal, and LNG, South Korea accounted for 15% of Australia’s LNG exports in 2024 following a 12% increase. As a leader in battery manufacturing, it is a growing destination for Australian lithium, cobalt, nickel, and rare earths.
India: Ranked among Australia’s top five export partners, India imported $14 billion of coal in 2021, representing 22% of Australia's coal exports.
ASEAN (Southeast Asia): Collectively the second-largest trading partner, ASEAN imported over $18 billion of Australian resources in 2018, led by coal, LNG, and metals. The region’s rapid industrialisation is driving fast-growing demand for minerals and basic metals.
United States: A major trade and investment partner, the U.S. sourced nearly 15% of its uranium imports from Australia in 2021 and remains an important collaborator in critical minerals and clean energy technologies.
These trade ties are underpinned by a web of free trade agreements and regional frameworks that Australia has pursued, including bilateral agreements with China, Japan, and Korea. These agreements have lowered tariffs and facilitated smoother export of Australian resources to overseas markets.
Australia’s mining and energy sectors attracts the greatest amount of Foreign Direct Investment (FDI), with mining and quarrying receiving $392 billion in 2023 and representing 38% of FDI in Australia.
This is underpinned by Australia's stable policy framework, skilled workforce, and strategic proximity to Asia. International capital has been instrumental in developing major mining and energy projects in Australia. FDI not only brings capital, but technology and expertise, with foreign partners helping develop advanced projects at Australian sites.
Investment is rising particularly in precious and industrial metals (e.g. copper, iron ore) and critical minerals and clean energy inputs. Investment trends are increasingly shaped by:
Generally, Australia welcomes foreign direct investment (FDI) in resources, recognising that large-scale mines and LNG terminals are capital-intensive. However, the government maintains a screening process for foreign investment to safeguard national interests, particularly in critical minerals. Recently, screening has become more selective as concerns surrounding strategic minerals have grown due to their importance to clean energy supply chains and defence.
The strategic importance of Australia’s mining and energy resources has prompted deeper international cooperation, particularly around clean energy and critical minerals. Australia has signed a series of bilateral and multilateral agreements to coordinate on supply chain security, sustainable investment, and technology sharing.
It has signed numerous bilateral agreements on critical minerals – with the United States, Japan, India, the EU and others – to coordinate on supply security and investment. For example, the Australia–US Climate, Critical Minerals and Clean Energy Transformation Compact (2023) and a similar Australia-Japan Critical Minerals Partnership create formal working groups to align policies and facilitate offtake agreements.
In 2022, Australia joined the Minerals Security Partnership alongside the U.S., EU, Japan, and India, an initiative aimed at securing critical mineral supply chains by coordinating investment in projects that meet high ESG standards.
In 2023, Australia chaired the 2023 Conference on Critical Materials and leads an International Energy Agency working party on critical minerals to develop transparency and ESG standards.
These efforts signal Australia’s intent to remain indispensable to global supply chains in a carbon-constrained future – as a trusted supplier of the inputs for clean energy, just as it was for fossil energy. At the same time, they indicate recognition that international investment and technological collaboration will be crucial to develop new mining and processing capacity in a timely, sustainable way.
Australia’s policy response to the evolving energy and resources landscape reflects a strategic effort to remain globally competitive while aligning with international climate goals. Federal and state governments have launched a suite of initiatives to support investment in value-added industries, accelerate the clean energy transition, and strengthen supply chain resilience in critical minerals.
The Critical Minerals Strategy 2023–2030, released in June 2023, sets out Australia’s ambition to become a world-leading supplier of ethically and sustainably sourced critical minerals. Key pillars of the strategy include:
To support this, the government has committed:
In the 2024–25 Federal Budget, the Australian Government announced the Future Made in Australia agenda, a whole-of-government industrial policy framework to drive national capability and competitiveness in clean energy and value-added manufacturing. The agenda includes:
A$22.7 billion over the next decade, including:
Strategic use of government procurement and investment attraction to support domestic clean energy manufacturing
The Future Made in Australia agenda mirrors the broader global shift toward industrial policy, as seen in the United States’ Inflation Reduction Act and the EU’s Green Deal Industrial Plan. Australia’s approach aims to keep pace with these international trends while securing long-term economic sovereignty.
Australia’s policy frameworks are also focused on scaling up clean energy export capacity:
These initiatives are supported by international cooperation agreements with Japan, Germany, and the U.S. to develop hydrogen supply chains and joint R&D efforts.
To facilitate greater foreign and domestic investment in clean energy and resources, the Australian Government has undertaken reforms to:
While these measures have been welcomed by many industry stakeholders, there remains concern over the complexity of the regulatory landscape, particularly for investors in emerging sectors such as rare earths and green hydrogen. The challenge will be maintaining investment attractiveness while balancing national security, ESG, and economic policy goals.
Australia’s mining and energy industries are deeply embedded in the global economy through their contributions to trade, investment, and resource security. As demand shifts towards decarbonisation and clean technology, these industries will remain central to Australia’s strategic and economic outlook. Managing the transition effectively will require policy coherence, sustained investment, and international cooperation. This will ensure that Australia can both uphold its economic strengths and lead on climate ambition in the decades ahead.
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