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“You’ve got to understand, the resource boom is over”- Australia’s Resources Minister

in International Business

“You’ve got to understand, the resource boom is over”- Australia’s Resources Minister

Martin Ferguson, Australia’s resources minister, has said that the country’s resource boom is over amid slowing global demand and falling commodity prices that have hurt Australian miners.

His comment followed after BHP Billiton reported that it has shelved a planned USD 30bn expansion of its huge Olympic Dam copper mine because of touch commodity markets.

BHP had originally been expected to give the go-ahead to the project in June, but recently flagged it was reviewing all of its major capital spending plans due the slump in commodity prices and rising costs.

That combination led to a slump in annual net profits of a third to US$15.4 bln with prices of most of the commodities supplied by BHP weaker on concerns over a slowdown in demand from China and the Eurozone.

Meanwhile, Senator Penny Wong, has remained optimistic about the future of Australia’s mining sector, saying the country has a lot of investment coming into this country.

“I think the mining boom has still got a long way to run,” said Senator Wong.



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