Australian treasurer Wayne Swan told an audience at the New York Stock Exchange that his nation is preparing for an enormous mining boom, even larger than what we’ve already seen over the last few years.
The country will need substantial amount of foreign capital, as it already has $355 billion of future mining projects in the pipeline. Mining investment plans are 500% their level six years ago:
Swan noted: “Australia is about to embark on its biggest mining investment boom since the 1850s Gold Rush. This pushes us to pick up the pace of reform, to make Australia an even more attractive investment destination,” he said.
It’s all thanks to China and India, whose growth for commodities still has a very long way to grow, even if growth has already been mind-boggling for China.
While many like to think that China’s rapid growth isn’t sustainable, its useful to remember that a lot of long-term players think otherwise. Else they wouldn’t be preparing over $350 billion of mining expansion. If they’re right in their long-term view, then it means that the China commodities demand growth story is far from over, which is great news for Australia.