The Australian mining boom has dominated the press lately, both in the southern hemisphere and on a global level, polarising opinion over whether it really is booming or is bust. Having enjoyed an unprecedented surge of success, reflected in high salaries, a thriving economy and towns springing up to accommodate the high volumes of workers, fears are growing (or perhaps just media coverage) that Australia’s mining boom is slowing down. Here’s a look at what’s been in the news:
The mining bubble has burst…
It all seemed to kick off when Resources Minister Martin Ferguson announced that “You’ve got to understand the resources boom is over” – a bold statement that opened the floodgates to a rush of similar comments and fears.
The mining bubble is booming…
Yet, on the back of this came comments from Australia’s central bank chief saying there’s no sign the mining boom is over and that the resource-rich economy was growing at its potential (as reported by Reuters). This was swiftly followed up by Treasurer Wayne Swan assuring reporters that Australia still has a resources investment pipeline of half a trillion dollars and “That pipeline will be there creating wealth and in the future creating exports for Australia and we will see an export boom following this investment boom”. Business spending plans appeared to back this statement up.
So what’s going on?
Media around the world has been keen to weigh in with their thoughts, from the BBC to The Age. The opinion pieces show cautious optimism for the long-term impact of the resources projects planned in Australia – highlighting how it’s not all doom and gloom in Australia. If you’re interesting in finding out more, The Herald Sun has done a great breakdown of what’s happening with Australia’s mining boom.