China’s $100bn stimulus package will benefit the longterm Australian mining industry and stimulate the nation’s economy, according to a senior trade commissioner.
Austrade trade commissioner, Christopher Wright, told MINING DAILY the demand for Australian resources will sky-rocket when China embarks on a series of infrastructure programs as part of a $100bn stimulus package to support its weakening economy.
Wright says a number of construction projects, including transportation and housing operations, will boost the need for steel-making commodities that are widely produced in Australia, such as iron ore, coal and nickel.
“The longterm story for Australian miners is a positive one,” he said. “While China’s economy has slowed a little, it is still growing… Demand for resources will continue to grow and will be bigger than last year.”
“China’s infrastructure projects will keep Australian industries alive and allow production to continue,” he said.
Wright predicts Australian mines can expect to see increased demand by 2011, as China works its way through resource stockpiles on its own shores.
“Australian mining will see a ‘flitter period’ over the next two years,” he said. “As things speed up in China, they will do the same to the Australian resources industry,” he said.