The Hunter Valley in New South Wales may bypass the worst effects of the global financial crisis, Deloitte partner Tim Riordan told MINING DAILY.
Last year, New South Wales produced more than $13.9 billion of resources, with exports topping $4 billion.
Coal accounted for more than 80% of the total value of mineral production, with the Hunter Valley making up more than two thirds of all coal mining operations in NSW.
“The thermal coal markets have not seen as many of the gyrations that the other commodities have seen,” Riordan said.
“While there have been drops in thermal coal, these drops are not the same as what other minerals have experienced. Moreover, the prices are coming off a peak that was well above the prices of three or four years ago. Therefore, businesses in the Hunter that have been well managed are still viable and are at the stage where they can still turn a profit regardless of what is going on in China.”
Riordan said the Hunter Valley would never be totally immune from the downturn but that they were well positioned to ride out the storm providing companies continued to invest wisely in innovation and sound R&D.