“Australia’s resources boom is over”

http://www.theaustralian.com.au/business/mining-energy/australias-resources-boom-is-over-says-martin-ferguson-after-bhp-shelves-mine-expansion/story-e6frg9df-1226456301996

RESOURCES Minister Martin Ferguson has declared the end of the mining boom, following the shelving by BHP Billiton of its Olympic Dam mine expansion.

“You’ve got to understand, the resources boom is over,” Mr Ferguson told ABC radio this morning.

“We’ve done well – $270 billion in investment, the envy of the world. It has got tougher in the last six to 12 months.”

But Finance Minister Penny Wong contradicted her cabinet colleague. “No, I think the mining boom has got a long way to run,” she told ABC 24.

Minerals Council of Australia chief executive Mitch Hooke also disagreed with Mr Ferguson.

“The boom is not over, it’s just different,” he said.

“The developing world transformation continues to deliver sustained demand growth, but capturing this means growing volumes – the free kick from higher prices is over.”

The opposition will likely seize on Mr Ferguson’s assessment – his starkest to date on the resources economy – given Labor’s re-election strategy is based on “spreading the benefits of the boom”.

The Resources Minister has previously warned Australia could no longer rely on high commodity prices as China’s economy continued to slow, and the maintenance of revenue streams would require an expansion of current capacity.

“I’ve been saying for some time that we’ve done well,” Mr Ferguson said today.

“The next pipeline is going to be more difficult.”

BHP Billiton yesterday blamed crippling development costs and weak commodity prices for its decision to shelve its $US30 billion ($28.71 billion) Olympic Dam mine expansion.

The decision followed Shell’s announcement it would delay some of its planned $17 billion investment in Australia and Woodside’s announcement of a 12-month delay to an investment decision on its $40 billion Browse Basin project.

Woodside’s flagship $14.9 billion Pluto liquefied natural gas project in Western Australia is also in doubt.

BHP announced its plans for the Olympic Dam expansion – which was expected to create 8000 construction jobs, 4000 permanent jobs and 13,000 associated jobs – were on hold indefinitely as it looked to alternative plans for its Roxby Downs mine.

———-

a massive mining project mothballed till business conditions are better e.g..when the other side takes power and repeals these taxes we will think about doing it..the commodity run is over..its only iron ore and coal that are in any sort of demand..the boom may have come and gone before we even realised..

401

About these ads

~ by seeker401 on August 24, 2012.

2 Responses to ““Australia’s resources boom is over””

  1. the boom may end, but our growth wont. we have a target of 50 million people by the middle of this century. we’ll do ok just through that growth.

    china. i got no idea. i can see india being being slated as a future war opponent. both have a billion people too many…

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

 
Follow

Get every new post delivered to your Inbox.

Join 789 other followers

%d bloggers like this: