As iron ore prices top $140/tonne, Kevin Rudd is declaring emphatically the end of the China mining boom
John Robertson
PortfolioDirect
As iron ore prices top $140/tonne, Kevin Rudd is declaring emphatically the end of the China mining boom. BHP Billiton thinks global demand for mine output will rise 75% over the next 15 years or about 3.5% a year. The ABS puts Australian mining volume growth between 2002/03 and 2011/12 at 3.0% a year. BHP is effectively saying growth prospects are better after the boom than before. So, too, is the Bureau of Resources and Energy Economics which has forecast 5.1% annual growth to 2018. There are risks in Australia's reliance on China and not all miners are good investments but the Rudd comments, repeated often enough, needlessly promote a negative view of the sector, especially at the retail end of the investment market when a more nuanced understanding of what is happening is warranted.
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John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business strategist and investment market professional for over 30 years after starting his career as a Commonwealth Treasury economist in Canberra. Since being Australia's top-rated commodities analyst and chief economist at one of Australia' leading stockbroking firms, he has advised companies across the mining, consumer products, IT and biotech sectors on their equity market relations. He leads the firm's investment evaluation and security structuring activities on behalf of the Australian Small Scale Offerings Board (ASSOB), the world's first equity 'crowdfunding' investment platform. John Robertson discusses the interaction of mining and investment markets in his weekly 'From the Capital' column in Mining Journal.
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John Robertson
PortfolioDirect
John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business...
Expertise
No areas of expertise
John Robertson
PortfolioDirect
John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business...
Expertise
No areas of expertise
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