Coalition hopes for resources-led budget recovery

The federal government is cautiously eyeing an unexpected budget boost as soaring iron ore prices in recent days hold out the hopes of billions of extra dollars flooding into Canberra repairing the bottom line and undoing the downgrade of the budget announced in December's mid-year budget update. Resources Minister Josh Frydenberg welcomed the recent spike in iron ore prices to above US$60 a tonne and said between that and the innovation undertaken by miners like BHP, the future of the industry is suddenly much brighter. "The Olympic Dam operations are an example of the resilience of Australia's resources sector, where the challenges of lower commodity prices have been combated through increased productivity and the use of innovation. Coupled with the long term positive outlook for global commodity markets, the future continues to look bright for Australia's world-class industry," he said.