To listen to our media you would think mining contributed little to our economy now – for months the media has been full of “the end of the mining boom” sentiment. To provide some balance – check out some statistics from the RBA –
This chart of exports shows that without our resources sector exports Australia would indeed be the basket case of SE Asia.
Interesting graph Warwick. Some lessons:
– Resources (i.e. mainly mining, but also agriculture) supply well over half Australia’s exports. So if we want to keep living standards up we had better remain open for investment in mining projects and not tangle them all up in red tape.
– Export volumes continue to rise long after investments are made – we are still getting the benefit of projects approved under the investment-friendly Howard government that was voted out in 2007.
– Thank heavens export volumes are still rising, because the prices we are getting are falling sharply. The “Commodity prices” section of the chart pack shows they have fallen by half since the peak in 2011 – but are still higher than their long-term average, so further falls can be expected.
David, I agree;
“we had better remain open for investment in mining projects and not tangle them all up in red tape.”
What most people do not realise is that our “mining boom” did actually finish 4 – 5 years ago – yes we are still taking lots and lots of minerals out of the ground BUT if you look to the industries capital investments and new projects you will see the significant decline about that time. Australia miners have not spent any significant capital $ in 4 – 5 years (and to a lesser extent world wide) and that means a major portion of the boom, i.e. designers, project companies, civil and construction works etc. all stopped at that time. Adani will probably become another casualty of sort sighted governments too eager to placate minorities.
When will this change? NO TIME SOON!! There is no capital investment for major projects, there are no significant feasibility studies so nothing is being started, therefore, it will be 3 – 4 years before anything happens on the ground. That’s with the assumption that commodity prices improve and we get some politicians with brains and a view to our long term future into government. The former will happen eventually but history tells us that the latter is a far less likely event 🙁 .
The boom did die! it died 4 – 5 years ago, just look at how the mining industry is spending capital or NOT spending to be exact.
No projects, no new mines, not even feasibility studies!
The industry is just “idling” and a major section of the industry that design and build the new projects has “gone elsewhere”!!