US election: Donald Trump win worth $10bn to Australian budget

US election: Donald Trump win worth $10bn to Australian budget, by David Uren.

Soaring iron ore prices since ­Donald Trump’s surprise US election victory would deliver a $10 billion boost to the federal budget if maintained over the next two years, lifting Turnbull government hopes that the economy will benefit from the US ­embracing fossil fuels and infrastructure-led growth.

Resources Minister Matt Canavan said yesterday Mr Trump would reverse the Obama administration’s attacks on the coal industry and support the ­advance of coal-fired power in emerging ­nations. “Donald Trump is good for fossil fuels, good for steel and good for Australia,” Senator Canavan told The Australian.

Since the election results hit markets last Wednesday, the iron ore price has risen by 16 per cent to a two-year high of $US79.81 a tonne, while steelmaking coal reached $US310 a tonne and is closing in on its record 2011 high of $330 a tonne. The copper price — often seen as a bellwether of global economic health — had its best week in five years, rising 11 per cent in the week.

hat-tip Stephen Neil