Asian Demand For Minerals Insatiable
Australian Mining Boom Continues..
It's almost lunacy to suggest that the Australian mining boom is fast nearing its end. The boom continues unabated. There are many, many reasons for my optimism. Firstly, Asia is undergoing massive industrialization. Look at India, Bangladesh, South Korea, Thailand, Vietnam, Indonesia, Malaysia and Mongolia too, if you wish! It's not just China that wants our iron ore and manganese and rare earths. Our alumina and our lithium. Japan has always been a great customer. No, the Asian continent demands more and more raw materials daily, including Australian minerals. Secondly, the new growth and emergence of an educated middle class in Asia, is pushing local demand for more consumer products. Electronics and technology industries are booming with smartphones and television, white goods, etc., all needed to meet consumer demand. That's even without exports. The pull continues on raw materials and Aussie minerals. Europe may dip. Asia will boom.
"Australia's mining companies are set to play a greater role in the nation's economy and talk of the industry's demise are “greatly exaggerated,” Secretary to the Treasury Martin Parkinson said. “We expect strong investment this financial year and next . a long lasting Australian Mining Boom .."
Australian mining began in earnest with the gold rushes of the 1800's, especially in Western Australia in Queen Victoria's time. Boom times saw authority for the construction of the present Perth Mint building in Hay Street, East Perth. It is worth a visit this very day. You'll learn a lot on the $20 guided tour of the Perth Mint. But now, Australia experiences up to $200 billion investment in the mining sector over a mere handful of years. This Australian Mining Boom is a long term mining phenomenon. Australia supplies the world, together with Canada, and increasingly matched with South America and Africa, the latter being thanks to massive Chinese investment on the African continent.
This segment contains some humour, because we just don't believe the scare-mongering going on about the end or demise of the Australian mining boom. Western Australia, South Australia and Queensland have hundreds of billions of dollars worth of projects in the pipeline. Even new uranium mines are being developed (viz, Toro Energy at Wiluna in Western Australia..). Yes, BHP has postponed the Olympic Dam uranium mine extension project in South Australia. The World's global economy is not dead yet, folks. Sure, Spain and Italy have sovereign debt problems like some other PIIGS countries, but Asia is booming, despite the corrective slowdown taking place in China, the powerhouse.
Look at Samsung Electronics and Hyundai Motor in South Korea. Can you see there the evidence of massive economic booming in the Asia region? Mining and minerals in Australia must continue at a frenetic rate to meet the raw material needs of these emerging tiger economies. A risk of war? Missile guidance systems gobble Aussie rare earths. Tanks require iron ore and manganese, housing and communication needs copper, alumina, lithium carbonate and that all means a continuance of the Australian mining boom.
– Written by Staff Writer, GPD