Passage To India Key For Australian Resources: RBA

The long-term future of Australia’s resources industry involves more exports to India and, if the world is to meet its climate goals, less thermal coal, according to the Reserve Bank.

Reserve head of economic analysis Alexandra Heath said long-term global demand for commodities would continue to rise because of population growth and less-developed countries growing their industries and cities.

Dr Heath said there would be less demand eventually from the primary market of China for the steel commodities iron ore and coking coal that made up more than 40 per cent of Australia’s resources exports last year, as China’s population was expected to fall and its industrialisation and urbanisation to slow.