Record Aussie mining profits flow offshore

If you want bonafide proof of why soaring gas and coal prices are a ‘profitless boom’ for Australians, look no further than the Q4 profits and current account data from the Australian Bureau of Statistics.

As shown in the next chart from IFM Investors chief economist, Alex Joiner, the gross operating profits of the mining sector ($75.2 billion) exceeded those of all other businesses combined ($72.5 billion):

Australia’s trade surplus reached $40.9 billion in Q4, the second highest on record. This was driven by “by sustained high commodity prices over 2022, with the value of mining commodity exports reaching over $400 billion for the year”.

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About the author

Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.