In a morning interview with the Australian Broadcasting Corporation (ABC), BHP Billiton’s CEO Andrew Mackenzie said recent changes in China’s consumption of Australia’s resources don’t imply the decade of mining bonanza for Australia is over.
According to the head of the world’s largest mining company, Australia hasn’t kissed the resources boom goodbye just yet. On the contrary, he claimed that for many of the commodities the country’s resources industry produces there is a good chance to witness a demand increase of about 75% in the next 15 years.
Mackenzie also stressed the importance of Australia raising its competitiveness to take advantage of the profitable opportunities on offer.
“The question is not if Asia’s demand for commodities will be met but rather which countries will deliver the supply,” he said.
Australia’s economy has been under increasing pressure over the past year, as slowing growth in China has led to waning demand and a slump in prices of key commodities.
The situation has led to declining investment and several large-scale resources projects have had to be shelved or abandoned. By the end of July, job cuts in the coal sector alone hit 11,000.
Reprinted by permission of Mining.com