Reports of mining’s death are ‘greatly exaggerated’

Despite rumblings the mining boom is close to finishing, HSBC Australia chief economist Paul Bloxham says projects already under construction will continue to spur the industry.

AAP reports Bloxham said while commodity prices were starting to level China was still growing much stronger than the rest of the world and would continue to demand raw materials.

Bloxham said a large amount of investment had already been made in Australia's resources industry and many large projects were still yet to come online.

"Reports of the mining boom's death are greatly exaggerated," he said.

"True, commodity prices have peaked, but there is still substantial investment yet to be completed."

Last week a report from Deloitte Access Economics said the mining boom would only last another two years and time was running out to get new projects into production.

Resources minister Martin Ferguson also said the era of high commodity prices was already behind us and to stay strong in the mining sector Australia needed to develop new technology.

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