Clive Palmer right on future of mining industry

I agree with Clive Palmer’s comments today that the mining boom isn’t over. While Mr Palmer obviously isn’t a disinterested observer of the mining sector, he nonetheless has compelling logic backing up his case, as reported in regional papers earlier today (Palmer optimistic about mining boom):

…Mr Palmer remains optimistic and spoke confidently to reporters in Brisbane about the future of Australia’s resources industry.

He said migration plans in China, which would see 50 million residents move from the country to the city, would result in steady demand for minerals.

“There are no questions if those plans will be implemented. China has the money to do that,” he said. “There needs to be homes with new facilities and that requires resources. So the underlying demand is there for our resources, there is no doubt about it…

…”It is not a matter of whether the mining boom is up one year and down the next. You need to look at large projects like our iron ore in Western Australia – it’s a $6-7 billion project and you don’t make that sort of investment because it’s a high or low market this year.”

I’ve made similar points in previous posts:

There will still be plenty of mining jobs in Queensland

Treasury sees China-driven resources boom continuing for decades

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