Rinehart’s Hancock weighs $3.3 billion iron ore mine project
Hancock acquired a 51% interest in the Mt Bevan project from Legacy Iron Ore Ltd. and Hawthorn Resources.
Australia’s February trade data showed the country suffered two consecutive months of deficits for the first time in two years.
The overall figures are bad enough, but the number one factor behind the slump was plunging income from resources – the value of coal exports dove 19% and that of metal ores and minerals exports declined 10%.
The volume of hard coking coal exports dropped 27% in February, a bad number even when taking into account Chinese holidays and severe weather.
The fact that income fell even while iron ore volumes increased 16% shows how severe the slump in prices have been.
Brisbane Times quotes HSBC chief economist Paul Bloxham as saying: “The commodity price cycle peaked in the third quarter of last year. With global growth expected to be below trend and more commodity supply to come on stream over the next year or two, it appears likely Australia’s terms of trade peaked in the third quarter as well.”
Citigroup economist Josh Williamson, quoted by The Australian, was even gloomier saying “This is a shocking trade result . . . the bulk of the disappointment came from the failure of commodity exports to recover from their January decline.”
7 Comments
Dav1942
Whoever wrote this is out of their tree?????????
Dav1942
All good things must end?????????
Widebay67
so the government introduces a mining tax and carbon tax when the world is searching for safer alternatives to nuclear power. take Japan for instance. Gillard get off the backs of mines they are and always will be the backbone of this country.
Greg
It won’t be the Chinese drop in demand that will damage the Australian economy, we have Julia Gillard and Wayne Swan to thank for that
Jgbowen1
How stupid some of these so call experts are. Wait six months and see where the prices are for all metals. Check the real thermometer of what metals are doing. Scrap is selling for more than it has in a decade so guess where the price of raw ore will go? I get so sick of jack asses like this trying to get their moment of glory by preaching doom and gloom. Australia will bounce back to be one of the leading coal and iron ore producers in the world again by the middle of this year. Have a little optimism people!
CCH
I agree with your remarket about those “Doom and Gloom” experts!
So you reckon Australia will catch up in the 2nd quarter? What’s your basis for making this optimistic remark?
Ben Chivers
Great picture