Seeds of next ‘boom’ being sown

’Tis the season to be gloomy, that much we know from following financial markets; but an early nominee for the Dr Gloomy prize of the season goes to former ANZ Bank chief economist, Saul Eslake, who said earlier this week that the China-driven mining boom was “the last in human history”.


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Unfortunately Tim, I suspect he is right. Hope is always a desperate option and reality is often very hard to accept. History is littered with deniers.

It may not be the last mining boom in human history, but we'll be waiting a significant amount of time for the next. I understand the last time Australia had a mining boom similar to what we have just seen was the gold rush boom in the 1860's. Can you wait that long:)

I totally agree and have said consistently that Australia has been through various recessions over the last 40 years brought on mostly by Central Banks and Politicians. In every one of those recessions we came out bigger and better than we went in and in those days we did not have the backing and growth of China, India and Asia as a whole. China only influenced the period of 2002 - 2013 and has not gone away. The combined middle class of China and India exceed the total population of the USA of whom 1 in 7 are on food stamps a Lift in commodity prices will create a tsunami of investment in junior companies and the cycle will recommence as it always does. Timing is the issue and my view is after the first quarter of 2016

Great way to scare the employees of the companies you predict will close. No thought for them. I hope you are wrong about critic because I'm screwed

Unfortunately I believe Saul has got it wrong and when I thought he was better than his peers he has slipped back to the pack. Unless there is some magic wand I have yet to comprehend there will continue to be cycles because of the very nature of the human race. When things are going well everyone wants in and when things are going bad everyone wants out. We need economists who can see the positives and talk about them. The more doom and gloom speakers spruik their wares the more negative the general population becomes. People stop spending and consuming because they have been convinced times are tough. People need encouragement not pessimism.

You are forgetting the CITIC and Karara projects are magnetite ore and are much more environmentally friendly than hematite ore. If the Chinese are to clean up their air pollution they will need more of this product, not less. Asia Iron has a similar deposit next to Karara and will most likely be developed. If you are building a 50 year mine you are not concerned with yesterdays iron ore price.

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