“Many Western nations are having to pay substantially more for energy, on the high chance that sanctions on Russia will see some Russian production — particularly gas and coal — become stranded from world markets,” it said.
The department had predicted an annual value of resources exports at A$450 billion, in its most recent September report. A weaker-than-expected Australian dollar exchange rate as well as high prices for thermal coal were the main factors behind the revision, it said.
Iron ore, which is still Australia’s most valuable commodity export, is seen at A$113 billion this financial year, lower than the year ended in June when it stood at A$133 billion.
Ongoing strength in thermal coal prices are expected to see the biggest annual revenue growth at 65%, taking export value of the fossil fuel to A$76 billion from A$46 billion.
The value of liquefied natural gas exports is expected to hit $A90 billion from A$71 billion last financial year.
However, amid slower growth in steel manufacturing, the value of metallurgical coal exports is expected to decline to $A57 billion from A$68 billion last year.
Revenue for lithium exports is expected to jump to A$16 billion from A$5 billion a year earlier, as demand for the mineral used in batteries heats up.
($1 = 1.4896 Australian dollars)
(Reporting by Melanie Burton; editing by Rashmi Aich).