Mining boom

[Aaron_C]

WOW, the boom has ended.

Look, the cafe lattes in Melbourne here are getting pricey because you rich miners/engineers/truck drivers there earning $200,000 pa can afford to splurge....so we'd rather your boom end so we can all be the same.

 

[lizzie]

I can add that Virgin is do special prices for SYD to MEL to rates I have not seems for 2 years since Borghetti took over. The only do this if they have very low advance booking as it can be up to 9 months ahead to get the cheaper rate.

We decided to head to NZ next school hols (6 weeks away) and thought we'd be lucky to get a seat ... turns out we not only got booking dates of our choice with Qantas (meal and movie) - but return cost only $415pp ... same price as I was paying 15+ years ago.

 

[lizzie]

wow forumites are working themselves into a hysterical lather!

Not hysterical - just aware but not alarmed. There are rumblings going on might - or might not - be an early indicator of a change.

Not something I'd like to speculate on at this time

 

[NDH]

Anybody know exactly what happened at Fast JV yesterday? I've heard some rumours but would love to read something solid.

Execution projects all business as usual.

Outer Harbour and all related projects ie new mines are indefiently on hold, ie stopped in their tracks, clean out your desk, good bye for now.

Optimisation studies going ahead but heavily reduced buget. Lots of people gone today and over the next few weeks...and that is on top of the 100 or so gone in the last few months.

All the EPCM's related to BHP have let go a lot of people of late.

 

[BMan]

whats your thoughts on jobs in the mines will they hold up or start getting laid off?

 

[Jenko]

http://m.brisbanetimes.com.au/business/rba-says-boom-still-blooming-20120824-24s1q.html#ixzz24VJLA3TS

Another interesting read...

 

[daveskis]

Yes Jenko there were a number of articles in the Syd and Melb Sat papers re the Mining Boom and it seems the cashflow is just starting to flow after the development phase.
Consensus seems to be another strong two years and then lets see where the rest of the world is going.

 

[HotRod]

Yes Jenko there were a number of articles in the Syd and Melb Sat papers re the Mining Boom and it seems the cashflow is just starting to flow after the development phase.
Consensus seems to be another strong two years and then lets see where the rest of the world is going.

By then you'd think that all this Euro mess etc should at least have been sorted and then we will have some clarity as future direction.

Wouldn't be surprised to see it kicking off again.

Copper is a major requirement as China enters the consumer age.

Expect Olympic Dam to be up again around then, me thinks.

 

[hematite]

By then you'd think that all this Euro mess etc should at least have been sorted and then we will have some clarity as future direction.

Wouldn't be surprised to see it kicking off again.

Copper is a major requirement as China enters the consumer age.

Expect Olympic Dam to be up again around then, me thinks.

FY14-15 is when copper prices are expected to increase. I think that is where I will move into next.

 

[redwing]

Digging a bit deeper, but there were about $175B worth of committed/under construction projects with about another $250B at earlier stages of planning/design.

So what is being said now is that there's STILL about $175B worth of projects committed/under construction and ONLY ( ) about $200B of projects in the pipeline??????

WOW, the boom has ended.

Depends on which street you're, on as to what the word is

I've got no idea

It would appear though that some projects are scaling back, however I guess one company scaling back is another companys good fortune i.e. FMG would be happy about the news of BHP delaying its Port Expansion (less competition)?

FWIW China has also sponsored a number of mining companies into Australia

Plus, I did see this heading up North...

 

[Aaron_C]

redwing - in business you are never really truly happy if your competitors nearby are closing down. It means that they are struggling which means you will also be struggling. It is always better if everyone (including yourself) is making money.

 

[Crabnet]

Depends on which street you're, on as to what the word is

I've got no idea

It would appear though that some projects are scaling back, however I guess one company scaling back is another companys good fortune

Yeah another example would be Oz Minerals. The chairman breathed a sigh of relief when the Olympic Dam expansion was deferred. They were worried all their Prominent Hill workers would jump ship to BHP.

 

[Pa1nter]

Plus, I did see this heading up North...

Cool photo,

 

[HotRod]

Depends on which street you're, on as to what the word is

I've got no idea

It would appear though that some projects are scaling back, however I guess one company scaling back is another companys good fortune i.e. FMG would be happy about the news of BHP delaying its Port Expansion (less competition)?

FWIW China has also sponsored a number of mining companies into Australia

Plus, I did see this heading up North...

North America?????

Hint, where's the steering wheel??????

 

[redwing]

North America?????

Hint, where's the steering wheel??????

Ha Ha...

Nah, he was on the inside lane

 

[Peter 14.7]

redwing - in business you are never really truly happy if your competitors nearby are closing down. It means that they are struggling which means you will also be struggling. It is always better if everyone (including yourself) is making money.

Agree. And add you can get a new better competitor.

I always think of the story re Qantas and Ansett.

Ansett never had the money or profile to seriously hurt Qantas domestically. A great setup for Qantas as they could claim "competition" when really they had it sewn up.

But when Ansett fell over, the little upstart Virgin stepped up. Virgin use to operate in SYD from converted mining sheds. 10 years old Virgin is seriously hurting Qantas everywhere and just opened its invite only Club Lounge for the likes of Britney, Pollies, etc.. Even us Platinum members need not ask unless famous, Whilst still offering $69 happy hours specials to keep qantas hurting.

Yet now being so weak, Qantas looking to be getting Emirates in as big brother and then it will be on.

Regards Peter 14.7

 

[Doomy]

Some more "inside goss".

BMA Brisbane city had some layoffs and the large projects division run by Bechtel in Fortitude Valley also.

If your not on Danuia or Caval Ridge projects your in trouble.

 

[Dubstep]

http://www.abc.net.au/news/2012-08-30/status-of-the-mining-boom-with-clarke-and-dawe/4234114

 

[redwing]

FMG to cut hundreds of jobs to save $1.85bn amid falling ore price

SLUMPING iron ore prices have claimed their first major project already underway, with Fortescue Metals Group slashing its $US10 billion expansion plans by more than a third and preparing to cut several hundred jobs in an effort to save $US1.9 billion ($1.85 billion) this year.

Fortescue admitted that it was not profitable at current iron ore price levels but said that the measures would bring the company back to profitability, even if prices stayed low.

Fortescue, which will struggle to pay interest on its debt-funded expansions at current iron ore prices, said that that it would limit its expansion to 115 million tonnes of iron ore a year, down from board-approved plans to go to 155 million tonnes by next June. The company currently produces about 55 million tonnes of the steelmaking ingredient.

“While we remain very confident in the future of the iron ore price … clearly, given the current conditions in China, it is going to take some time to recover,” Fortescue chief executive Nev Power said.

Link

 

[Ausprop]

FMG to cut hundreds of jobs to save $1.85bn amid falling ore price



Link

maybe they can use some of their savings to repay what they lost up at anaconda?