There is a lot of focus on the end to the mining investment boom at the moment and the need for the rest of the economy to get moving.
RBA Governor Glenn Stevens has called for the return of animal spirits from Australian business owners and a lower Aussie dollar as a way to get the economy moving.
In research released this morning, Mining in Australia 2014 to 2029, BIS Shrapnel, noting the collapse in the absolute level of mining investment says “it is not all bad news in the mining industry, with a boom in mining production, operations and maintenance to roll on right through the next five years.”
Adrian Hart, Senior Manager of BIS Shrapnel’s Infrastructure and Mining Unit said:
The investment boom continues to shift to an echo production, operations and maintenance boom.”
“Over the past three years, the real value of mining production has increased by 30 per cent. It now makes up 10 per cent of the national economy on this measure. Another 33 per cent growth is expected over the next five years, with the share rising to 12 per cent. In Western Australia, the value of mining production will overtake that of the entire Australian manufacturing sector during 2014/15.
So as the boom ends in one part of the mining economy opportunities arise in others.