The AFR has released an excellent study of the next round of jeopardised mining projects:
Analysis by The Australian Financial Review of the federal government’s Bureau of Resources and Energy Economics’ major projects pipeline shows more than a dozen big developments in the less advanced category will be further delayed, endangering the next phase of the resources boom.
…The bureau’s executive director, Quentin Grafton, will tell the Association of Mining and Exploration Companies forum in Perth today that the outlook for projects has cooled while commodity prices will remain subdued.
“I will emphasise that prices are in decline relative to their peaks in 2011 and I don’t see that fundamentally changing. We might be in a bit of a down in terms of confidence at this moment of time in China, but nevertheless the issue is that prices continue to moderate and that is a function of increased supply coming on board now and into the future.”
…The government agency expects committed projects to remain near the $260 billion level: some have been completed but others have since been approveed.
However, some of the shelved projects which make up less advanced developments worth $240 billion could be taken off the list entirely when they come up for review.
Hmmm, well, if the big boys aren’t going to cut ore production, the ore price is going lower. I thoroughly recommend a trip over to check out the list of jeopardised projects.
