2014: Boom or Bust?

  • Written by 
  • Tuesday, 14 January 2014 10:10
|  
(4 votes)

Albert Einstein once said: Learn from yesterday, live for today, hope for tomorrow. As the year of 2014 begins, we thought it was time to discover what could be learnt from 2013 in terms of how the resource sector performed, what the current state of play is and what is on the horizon for Australian mining in 2014.

IRON ORE

iron-mining-2013

2013 was not a stellar year for iron ore miners. The price of iron ore bottomed out due to factors such as a shift in industrial activity in China and, at times, issues with oversupply. However, a number of industry analysts predict that 2014 will prove a better year for iron ore producers. It has been conservatively forecast that the Aussie dollar will lower and this will lead to improvement in the performance of big Australian mining operations in terms of their off shore interests.

GOLD

gold-mining-2013

Similar to iron ore, 2013 was a woeful year for gold prices. In 2013, the market value of gold fell to its lowest level in 30 years as investors shied away from purchasing the precious metal in favour of better performing equities. Australian gold production is set to increase significantly in 2014 as a number of projects ramp up output. The Tropicana joint venture project, Newcrest's Cadia East mine, Mungana Goldmine's Chillagoe project and Tanami Gold's Central Tanami project are all expected to be able to supply increased amounts of gold. The world gold market is set to stabilize as China’s burgeoning middle class demands more of the precious metal and this is expected to bode well for Aussie gold mining.

2014 MINING PROJECTS

gove-2013

In late 2013 Rio Tinto made public its decision to end operations at its alumina refinery on the Gove peninsula. This move by the mining giant means the demise of over 1,000 jobs and will severely impact the small town of Nhulunbuy which is innately tied to the plant in terms of the jobs it provides and the revenue it pumps into the town.
Alternatively, 2014 is expected to prove a better year for coal mining in Australia. Indeed, Whitehaven Coal’s Maules Creek mine will now begin operations following the rejection of a challenge by the environmental group NICE (Northern Inland Council for the Environment) in Federal Court. The $767 million Maules Creek project is expected to produce 13 million tonnes of coal per year and create over 800 jobs. This project will be a boon to the mining industry in Australia, as well as the Australian government, as it is expected to generate more than $6 billion in royalties and taxes in just over twenty years.

What are your predictions for the Australian mining industry in 2014?

Written By:

Minetalk

MINETALK TWITTER

SHARE PRICES

Loading
Chart
o BHP A$33.65 ▲0.09 (0.27%)
o Rio Tinto A$64.41 ▲0.71 (1.11%)
o Fortescue A$2.49 ▲0.01 (0.40%)
o Newcrest A$14.39 ▲0.46 (3.30%)
ASX:BHP

BHP

Company ID [ASX:BHP] Last trade:A$33.65 Trade time:4:10PM GMT+11 Value change:▲0.09 (0.27%)
ASX:RIO

Rio Tinto

Company ID [ASX:RIO] Last trade:A$64.41 Trade time:4:10PM GMT+11 Value change:▲0.71 (1.11%)
ASX:FMG

Fortescue

Company ID [ASX:FMG] Last trade:A$2.49 Trade time:4:10PM GMT+11 Value change:▲0.01 (0.40%)
ASX:NCM

Newcrest

Company ID [ASX:NCM] Last trade:A$14.39 Trade time:4:10PM GMT+11 Value change:▲0.46 (3.30%)

COMMODITY PRICES

Minetalk Poll

Is the mining boom in Australia over?

Is the mining boom in Australia over?

No, it's just media hype.
Yes as a result of lower demand.
Still plenty of resources.
There will be a second boom.
1 Votes left

HomeNewsHave Your SayVideosPhotosDirectoryForumHelpLegalPrivacy PolicyContact Us


Minetalk.com.au |  © 2014 SM Media