North Australia Digest – 4/10/124 October 2012
We’d love to know what you think about today’s major stories that impact North Australia:
Australian Financial Review
Executives and fund managers in the mining sector say that the slowdown in the industry is barely a new phenomenon and should have been factored in by economic forecasters earlier.
Arrium is desperate to emphasise the value of its mining and mining consumables businesses in an attempt to convince the market of their worth. The company’s board has increased spending to diversify its earnings away from core steelmaking operations.
The Newman Government has declared the proposed bauxite mine in Cape York back on the agenda. Proponents hope to commence work on the Cape Alumina project in two years.
With China’s growth slowing and demand for raw materials easing, investors are being ‘squeezed’ out of the resource sector, and into alternative markets. According to Carolyn Cui, investors are turning away from raw metals; such as zinc, aluminium and nickel, in favour of energy based markets; such as crude oil, which is less vulnerable to a slowing Chinese economy. (Taken from The Wall Street Journal – No link)
George Blitz, vice-president of Dow Chemical Company, warns that ‘neglecting the LNG debate creates abundant scepticism’.
Business leaders are demanding tax and labour reforms after the Reserve Bank predicted the resources boom would end next year.
Australia has posted its widest trade deficit since before the global financial crisis as the Reserve Bank says the resource boom would peak earlier than expected.
The West Australian
Uranium miners have been dealt a blow yesterday after French company, Areva, and China’s Guangdong Nuclear Power Group failed to bid on the Horizon nuclear joint venture.
Rio Tinto’s Hamersley Agricultural Project began yesterday, irrigating 850ha of pastoral land with excess water from its Marandoo iron ore mine.
Oil and gas explorer, Drillsearch Energy, has made a $118 million takeover offer for fellow explorer Acer Energy.
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