Mining boom continues despite lower prices, says Clyne

Mining boom continues despite lower prices, says ClyneNational Australia Bank boss Cameron Clyne has said that the boom in the investments in mining projects continue even as the prices of commodities have fallen in global markets.

He added that there is a significant of projects even as the price of commodities has fallen over the years. There are concerns that the rising prices will force more companies to follow BHP Billiton and cancel major projects in the country.

“Commodity prices would appear to have peaked and are coming off, though they are still actually quite high. The other issue is whether there is still a massive pipeline of investments. There is no suggestion that we have seen that people are going to stop that investment. But the other side is that commodity prices are coming off,” Mr Clyne said.

Many believe that the resource boom in Australia, which helped the country better face the effects of a global economic slowdown, might be getting over. BHP Billiton last week cancelled the $20 billion expansion of the Olympic Dam site and this has raised concerns over the future of projects including the expansion of Port Hedland iron ore export facilities.

The Reserve Bank governor Glenn Stevens had entered the debate recently by saying that that there are no signs of the country’s resource boom being over.

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