Australia’s current-account deficit narrowed in the three months through June as exports of iron ore and coal surged. The shortfall on goods, services and investment moved to A$5.64 billion ($5.05 billion) from a revised A$16.5 billion in the first quarter, the Bureau of Statistics said in Sydney today...The current account is the broadest measure of trade because it includes investment flows as well as goods and services shipments. A deficit represents money Australia has to borrow overseas to pay for the goods and services it imports, and to finance investment not covered by local savings.

If iron ore and coal prices were to drop back to 2002 levels, Australia's budget would be looking as bad as that of Greece. And the nation's future would be in the hands of the IMF. The deficit would be above $100 billion and approaching 10 per cent of GDP. No one is forecasting such a fall -- indeed both Treasury and the Reserve Bank expect only a modest correction in resource prices as the China boom continues indefinitely. However, the analysis shows how narrowly based Australia's prosperity is.

Hundreds of rescuers are using equipment from Australia and the US in the rescue of 33 miners trapped deep underground in a collapsed Chilean gold and copper mine. The Chilean government has contacted an Australian service company to the mining industry to acquire remote tele-locators for use in the mine rescue...The Chilean government contacted Coal Services, which specialises in occupational health and safety, mine rescue and workers compensation.

Mining industry chiefs are celebrating Labor's poor showing, buoyed by rising hopes the government's resources rent tax faces the axe. The prospect that the $10.5 billion MRRT will not survive the coming days of political horse-trading could boost shares in BHP Billiton, Rio Tinto, Fortescue Metals and the scores of other iron ore and coal miners that are subject to the planned impost.

A group of 20 coal mine managers from China, including representatives of Jizhong Energy Group, one of the top 10 coal mining companies in China, senior directors from the State Administration of Work Safety and a Party Secretary are visiting Coal Services’ Mine Rescue Station in Argenton. The Chinese delegation will be briefed on Coal Services’ world class technical expertise on mine safety, training approach and the use of its Virtual Reality Training system.

Iron-ore-miners Fortescue Metals and Atlas Iron on Wednesday added their voices to the growing number of companies urging voters to consider the economic implications of the proposed mining tax when voting on Saturday. Fortescue CEO Andrew Forrest, who is a vocal critic of the minerals resources rent tax (MRRT), said at a press conference in Perth that the MRRT had pushed the Australian mining industry into a similar situation as the global financial crisis, and threatened to diversify his investments away from local projects.

Xstrata Plc, the world’s biggest exporter of energy coal, said the demand outlook for the commodity for both steelmaking and power production is “robust” because of urbanization in China and India. Australia will be a key investment region as Xstrata seeks to boost production to tap rising consumption, Peter Freyberg, the company’s chief executive for coal, said in a speech at the Coaltrans conference in Brisbane today.

Mongolia is emerging as a major competitor to Australian coal exports due to its vast untapped reserves, cost efficiency and close proximity to China. Mining giant Leighton Holdings Ltd says Mongolia has at least has 10 to 15 billion tonnes of recoverable coal that could be supplied to China for less than US$100 per tonne. Leighton Asia is the only international miner in Mongolia, where it operates three coal mines, including the Ukhaakhudag Coal Mine in the South Gobi region, 200 km from the Chinese border.