Reports today (Mine shutdown a ‘kick in the guts’) about the closure of BMA’s Norwich Park coal mine in Dysart, Central Queensland clearly refute recent claims the mining sector is undergoing an out-of-control expansion. As reported on ABC News (Coal mine closure ‘presents $1b export threat’):
The BMA says the widespread belief in an Australian mining industry boom is misplaced.
BMA asset president Stephen Dumble says the company’s other mines remain profitable.
“Norwich Park, unfortunately for a range of circumstances, was the most exposed to some of those commercial pressures and in that sense is somewhat of an isolated case,” he said.
This comes at a bad time for the new Queensland Government, which will have to reduce its forecast coal royalties, but I expect the closure will have only a temporary, limited impact on the economy, given the large pipeline of resources sector projects that are planned or under construction.
Other recent news reports show the potential for even further growth in the Queensland resources sector: