10 Sep 2012 –
Trade minister Craig Emerson remains confident China’s demand for Australian iron ore and coal will drive a new “production” phase, The Australian reports.
According to the newspaper, Mr Emerson conceded resource prices were lower and that Chinese demand would not return to previous highs.
“There are three phases to a mining boom. The first when prices rise because of a sudden increase in demand, there is then an investment boom when companies tried to lift production and finally there is a production boom when quantities rise because of the investment in production,” he said.
“Australia has not yet seen the start of the third phase.”
Mr Ferguson’s comments come after resources minister Martin Ferguson’s recent suggestion that the mining investment boom had ended.