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"The resources boom is over," says Australian Resources and Energy Minister Martin Ferguson....

"The resources boom is over," says Australian Resources and Energy Minister Martin Ferguson. "We've done well ... the envy of the world. It has got tougher in the last 6-12 months." His comments come as BHP and other miners put the brakes on capital spending amidst high costs in Oz and slowing demand abroad (chiefly China).
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Comments (13)
  • Ray Merola
    , contributor
    Comments (3355) | Send Message
     
    The resource boom in Australia is in trouble due to the Greens, not long-term demand economics.

     

    The Aussie carbon tax, like so many other regulations, discourage investment and enterprise.

     

    BHP is making a statement to the Australian government: amend the carbon tax.
    22 Aug 2012, 11:45 PM Reply Like
  • lostalloncoal
    , contributor
    Comments (373) | Send Message
     
    How is our Obama any different. The acquisitions of assets by chinese companies has reached record high. USA on sale by Obama to chinese funds. Solar scam where 16 companies went bankrupt where Obama put tax-payers money. Why is Bloomberg not mentioning it. Obama campaign ads on Bloomberg for free. People like Bloomberg is screwing USA.
    23 Aug 2012, 12:29 AM Reply Like
  • Barry Crocker
    , contributor
    Comments (454) | Send Message
     
    Wrong on every count Ray.
    23 Aug 2012, 10:26 AM Reply Like
  • Ray Merola
    , contributor
    Comments (3355) | Send Message
     
    How so, Barry? Colin Lea below has similar data points. See his commentary below.

     

    While another good mind may conclude that the "Australia resource" issue is about China growth (or lack thereof), I believe this is a red herring. Large resource projects take years to plan and execute. They are not put forth nor pulled based upon short-term trends or whims.

     

    I believe BHP is making a statement to the Australian government that their policies discourage doing business there. This issue has been an ongoing dust-up between BHP (the largest mineral / mining company in Australia) and the Green movement.

     

    Indeed, technically the Labor Party sponsors the legislation. However, the Green party is pushing hard behind them.
    23 Aug 2012, 11:49 AM Reply Like
  • lostalloncoal
    , contributor
    Comments (373) | Send Message
     
    Thats the point: "I believe BHP is making a statement to the Australian government that their policies discourage doing business there."

     

    Depart of commerce came out of stats that US lost more than half trillions due to Obama policies. What more proof do you want.
    23 Aug 2012, 01:36 PM Reply Like
  • Whitehawk
    , contributor
    Comments (3129) | Send Message
     
    It will be quite material (pardon the pun) to see where the BHP - Aussie Gov't fight(s) settle. I side with BHP, but don't count out the political countenance of the seemingly growing government influence and impact in Australia.
    23 Aug 2012, 02:24 PM Reply Like
  • Ray Merola
    , contributor
    Comments (3355) | Send Message
     
    Yes, lostalloncoal

     

    Government policies do drive economies. Policies and associated regulations affect businesses, and in turn, the placement of private capital. Such capital is competing for placement in a global world where it may generate the greatest returns for the least risk. Business leaders spend a great deal of time examining these situations and deciding where to put money to work.

     

    Government indecision can also be nearly as bad as poor policy decisions. Many businesses, particularly those involved with natural resources (mining and energy for instance) plan years in advance due to huge capital outlays.

     

    23 Aug 2012, 04:42 PM Reply Like
  • Barry Crocker
    , contributor
    Comments (454) | Send Message
     
    they settled with the MRRT. BHP agreed that they should be paying more. Olympic Dam wasn't scrapped because of the MRRT. Don't buy a word Colin writes. He's blinkered.
    23 Aug 2012, 04:50 PM Reply Like
  • Colin Lea
    , contributor
    Comments (578) | Send Message
     
    Fact: The Mineral Resources Rent Tax is a Labor and Greens policy.
    Fact: The Carbon Tax is a Labor and Greens policy.
    Both are non-conducive to the future of the mining industry in Australia. The statement by the Labor Minister "The resources boom is over," (Australian Resources and Energy Minister Martin Ferguson) "We've done well ... the envy of the world. It has got tougher in the last 6-12 months."

     

    Gotten harder thanks to two self goals by the Labor Party...

     

    And in breaking news, man jumps in puddle and is surprised that he gets wet...
    23 Aug 2012, 11:23 AM Reply Like
  • Colin Lea
    , contributor
    Comments (578) | Send Message
     
    Apparently the Prime Minister disagrees with her own Minister...
    (almost like a scene out of the BBC's Yes Minister lol)

     

    AUSTRALIA'S resources boom is secure for some time to come, the Prime Minister, Julia Gillard, has told Parliament, speaking just hours after her Resources Minister appeared to declare it dead.

     

    Read more: http://bit.ly/O68wqx
    23 Aug 2012, 02:42 PM Reply Like
  • Barry Crocker
    , contributor
    Comments (454) | Send Message
     
    You're blinkered by your political bias Colin. Ray was wrong on every count and you're to blame : )

     

    The boom of very high prices for coal and iron ore are over but we'll still be digging it up and shipping it out for a while yet.
    23 Aug 2012, 04:45 PM Reply Like
  • Colin Lea
    , contributor
    Comments (578) | Send Message
     
    Openly a supporter of the coalition Barry, would happily go back to the good old days of the Howard Government. That said, I also appreciate the changes implemented to financial and prudential regulation by Hawke and Keating. The current political circus though has been good for no-one.

     

    I have stated in one of my articles previously (in a comment on Fortescue if memory serves me correct), that the MRRT would have been good if it actually went to developing a sovereign wealth fund, not to try and help Labor claw back the surplus they squandered. Unfortunately for Rudd, Gillard and Swan they capitulated too early with the miners, and lost their hand of poker.

     

    My point of clarification is Labor & the Greens are responsible for the above two policy implementations; that is a fact. China's slow down in demand obviously affects the miners bottom line, but it doesn't help when the government actively puts hurdles in the way. But that's what you get with a minority government.

     

    And I agree, we'll be digging and exporting these resources for years. Not blinkered Barry, long BHP ;o)

     

    Thanks for your comments, Col
    23 Aug 2012, 07:04 PM Reply Like
  • Ray Merola
    , contributor
    Comments (3355) | Send Message
     
    Still curious as to the source of your opinions, Barry. Here's two ten year charts: one for coal and one for iron ore pricing.

     

    The one for coal doesn't look so much like a boom. Somewhat similar to oil. Up and down. Some may figure that as emerging market countries industrialize, they will drive up the cost of coal. Most of the developing nations are far less interesting in the Green movement than developed Western nations. In any event, I believe that global energy demand will continue to increase over the long-term. Fossil fuels (oil, coal, and gas) will continue to be the primary drivers during our lifetimes.

     

    http://bit.ly/NIZpQm

     

    The chart for iron ore has moved up in concurrent with developing nations. One might conclude that as global economies improve, the demand for steel will grow. Developing nations need for steel will outgrow developed nations; however, many Western nations are not in particularly good shape right now. Indeed, many nations of all sorts show weak economies or are in outright recession. Yes, there are some that believe the clouds will never break. Others disagree. At such point, won't supply and demand take over? If not, why? If so, then would not iron ore prices remain elevated?

     

    http://bit.ly/NIZp2L
    23 Aug 2012, 05:07 PM Reply Like
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