“In the longer term this probably falls right into the hands of Australian producers, who are among the highest quality and lowest cost producers in the world,” he said.
The fall in prices didn’t hurt the share price of Australia’s other big producer, Fortescue on Thursday, which was buoyed by news of record production and shipments during August.
Do you ever read the articles you post?
Definition of a doom and gloomer from 1993 The last camp is made up of the doom-and-gloomers. Their slogan is "it's the end of the world as we know it". Right now they are convinced that debt is the evil responsible for all our economic woes and must be eliminated at all cost. Many doom-and-gloomers believe that unprecedented debt levels mean that we are on the precipice of a worse crisis than the Great Depression. The doom-and-gloomers hang on the latest series of negative economic data.
And if that transpired, why would it have any particular benefit to us? Would it create another great decade-long surge of mining investment?
Just because something may be good for a mining company's bottom line, it does not automatically follow that it is good for the rest of us. If a few big oligopolists eliminate all the smaller players from Australian ore mining - so what? At the moment, demand is falling at the same time as supply is booming. Stamping out the smaller players will not create demand for vast new volumes of ore. And without demand for more ore, there will be a lot less mining investment, less jobs and less flow-on into the economy, irrespective of how BHP and Rio are doing.
And if that transpired, why would it have any particular benefit to us? Would it create another great decade-long surge of mining investment?
Just because something may be good for a mining company's bottom line, it does not automatically follow that it is good for the rest of us. If a few big oligopolists eliminate all the smaller players from Australian ore mining - so what? At the moment, demand is falling at the same time as supply is booming. Stamping out the smaller players will not create demand for vast new volumes of ore. And without demand for more ore, there will be a lot less mining investment, less jobs and less flow-on into the economy, irrespective of how BHP and Rio are doing.
WA will be mining for 100s of years most likely. All that has happened is that new mines have been built and they are now completing. You guys keep insisting that the few years of construction jobs is better for the economy than long term permanent mining jobs and the export earnings that are now rolling in.
If this were the case then we could just build any old thing and hey presto we have a once in a lifetime any old thing boom.
Have you any idea of the amount of natural gas about to be produced here? How can you even think that WA will not continue to be very very wealthy for decades to come?
Perth has a normal economy just like any city in the world, but it is the capital city of a huge wealthy State, you are believing the drama queens selling newspapers and blogs.
Can you seriously not see through these drama queens after all these years of GFC moaning and complaining and wishing for a crash like kids who wish for a broken leg coz they think the benefit of attention will out weigh the cost.
Definition of a doom and gloomer from 1993 The last camp is made up of the doom-and-gloomers. Their slogan is "it's the end of the world as we know it". Right now they are convinced that debt is the evil responsible for all our economic woes and must be eliminated at all cost. Many doom-and-gloomers believe that unprecedented debt levels mean that we are on the precipice of a worse crisis than the Great Depression. The doom-and-gloomers hang on the latest series of negative economic data.
WA will be mining for 100s of years most likely. All that has happened is that new mines have been built and they are now completing. You guys keep insisting that the few years of construction jobs is better for the economy than long term permanent mining jobs and the export earnings that are now rolling in.
WA has been mining stuff for decades but we have never had a boom in mining infrastructure like the one we have just seen.
It also came at the same time as Chevron and Woodside were trying to exploit NG reserves with rapid expansion and the state government was on a spending spree building new monuments.
This led to WA paying the highest wages in the country.
Immigrants were coming in and buying weak dollars and flash houses and the local building industry couldn't keep up with demand.
Now the mining infrastructure boom is in its end stages and the state government can't afford any new monuments other the those it is already committed to.
Immigration is falling and residential construction is going mad. We are increasing our supply of housing stock after the event.
The property market is as flat as a pancake and hasn't moved an inch since December 2013.
Meanwhile rental vacancies are up a third on a year ago.
All this and we haven't even begun to see the real effects of falling mining infrastructure works yet.
Matthew, 30 Jan 2016, 09:21 AM Your simplistic view is so flawed it is not worth debating. The current oversupply will be swallowed in 12 months. By the time dumb shits like you realise this prices will already be rising.
No they just look at the head line price of Iron Ore, they don't see the real end game here.
End game?
You mean big miners slashing operational costs even further to hold onto their margins?
Matthew, 30 Jan 2016, 09:21 AM Your simplistic view is so flawed it is not worth debating. The current oversupply will be swallowed in 12 months. By the time dumb shits like you realise this prices will already be rising.
No they just look at the head line price of Iron Ore, they don't see the real end game here.
The real end game, that's a good one Mike, would you like me to elaborate.
The end game is clear, only a fool is still unable to see this.
Counterfelt chinese money has bubbled the WA economy and house prices, as they have Melbourne or Sydney too.
China has, over 2011-2012 alone, used more cement and built more stuff than the US did in the 20th century, increasing their debt from 1 trillion to 15 trillion to do so.
This has been a building boom on a scale unimaginable on any level. Building hundreds of ghost cities to just to spend the counterfeit money and build something with it, creating millions of jobs in the process. At the time our mines were not capable of supplying this massive demand all of a sudden, and comapnies outbid each other for this shit, rocks in the ground , paying around $200 a tonne at one stage.
Their overbuilding debt binge stupidity has now hit a brick wall fast, was never sustainable and was never going to be sustainable, just a complete dissater in the making.
They now have enough building to last decades but jobs will now dissapaer fast , very fast, extremely fast.
All that building , needed workers, supplies, trucks , tyres , fuel, maintenance, work clothes, work gear and whatever else. When the building hits a brick wall, all this building of iron or cement and EVERYTHING else will collapse. When their cement production drops from 20, 000 gazillion tonnes a year, to 50 gazillion tonnes a year. We won't need all those workers, all those cement plants, all those supplies that accompany it. We won't need all those trucks, all those tyres, all that fuel, all the maintenance and insurance and servicing costs. And this is a very small example of just one aspect of building.
Its all over Mike, wake up and smell the reality and stop encouraging kids to leverage into this ponzi, and more so your WA and Perth one.
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