Billions of dollars of mining projects in doubt
A report has found the nation’s mining industry is in survival mode and $200 billion worth of planned resources projects are in doubt.
The report, by Newport Consulting, has found falling commodity prices and surging operating costs are the major reasons why companies are becoming less optimistic about the future of the resources boom.
The report involved interviews with dozens of miners about their willingness to invest in future projects.
It found only 25 per cent of companies are planning to invest in capital expenditure projects this year, compared with 52 per cent last year.
Newport’s David Hand says many miners are thinking twice about investment decisions.
“We believe that $200 billion worth of investment is in jeopardy and in doubt,” he said.
Meanwhile iron ore prices continue to slump, yesterday falling to a two and a half year low.
Topics:mining-industry, perth-6000, karratha-6714