{ Burn Baby Burn }

Well we are a month into 2013 and from my perspective in the market place there certainly seems to be an air of optimism out there among a number of industry professionals. There looks to be good reasons behind the sentiment as I’ve just read an article highlighting that China’s coal imports could jump to 500M tonnes in the next 3 years.  The demand coming out of China should help to steady some of the long term outlooks from Australia’s perspective but the relatively high price of delivering projects in Australia still makes it a 50-50 decision. Whether to move forward or hold off another 6,12 or 18 months to see what the Aussie dollar does, I think is a question plaguing the minds of many project professionals.  Either way, Australia has to be acutely aware that the demand from China and India will continue to increase as the appetites of the emerging middle classes require more electric power which will inevitability be generated through the burning of coal.

{ 2013, Good news ahead }

It had to return, it must return, and it looks like it will return. It may not to the heights or the speed in which the mining industry has been accustomed to but I read with delight that 2013 looks to be a good year for Aussie Miners.  This is great news to kick start 2013, giving us something to look forward to for the year ahead while leaving the forgettable 2012 year to be a distant memory. The driving force behind this news has been the strong return in the iron ore price over the past few months with it reaching a recent high of $151.00/tonne on the 4^th of Jan 2013.

{ Confucius says China will not stop }

“It does not matter how slowly you go so long as you do not stop”  Confucius (551 BC – 479 BC)

After what has been a tumultuous 12 months in the mining industry I read with interest on Friday a report from a UBS economist that China is on the road to a modest recovery for 2013.  There are a number factors that seem to support the growth forecast of 8% but none more greater than the investment into infrastructure & the return of the property sectors.  As China is no longer heading towards the hard landing we expected this is great news for the resources industry with the demand for quality commodities intensifying over the coming 12 months.

{ Is there Gas in Iron Ore ? }

Despite the recent turbulent times for the Fortescue Metals Group they remain true to their entrepreneurial spirit as I read with interest of a recent inquest into the emerging unconventional gas industry. Although the investment into the Australian based explorer Oil Basins Ltd only gives FMG an 18% share, this may seem like a simple drop in the ocean but it could produce a wave of tsunami like proportions for the future strategic directions of the business.  The initial investment put up by Fortescue will fund the exploration for unconventional shale gas in the Canning Basin in far north Western Australia.