Australia forecasts a strong jump in iron ore production and a 10% rise in copper mine output in the year to June 2010 as mining companies also step up their purchase of heavy equipment for sale, even after factoring in a more stretched economic slump that has already triggered supply drops.Visit our Website for more information on heavy equipment for sale.
The Australian Bureau of Agricultural & Resource Economics also said that a slight jump in the wheat crop would yield sharply higher exports, while production of coking coal was expected to remain largely unchanged after a downward revision in its first forecasts for the coming financial year.
At a time when many commodity producers are cutting back production quickly to keep pace with tumbling demand as the world falls into a deep recession, the ABARE forecasts suggest that some new projects are too advanced to stop, adding pressure to metal and ore prices that have already halved or more.
This might be especially true of iron ore, said DJ Carmichael & Co mining analyst James Wilson, citing recent expansions by Australia's top three producers, BHP Billiton, Rio Tinto and Fortescue Metals, as well as small upstarts Atlas Mining and BC Iron.
The Australian Bureau of Agricultural & Resource Economics also said that a slight jump in the wheat crop would yield sharply higher exports, while production of coking coal was expected to remain largely unchanged after a downward revision in its first forecasts for the coming financial year.
At a time when many commodity producers are cutting back production quickly to keep pace with tumbling demand as the world falls into a deep recession, the ABARE forecasts suggest that some new projects are too advanced to stop, adding pressure to metal and ore prices that have already halved or more.
This might be especially true of iron ore, said DJ Carmichael & Co mining analyst James Wilson, citing recent expansions by Australia's top three producers, BHP Billiton, Rio Tinto and Fortescue Metals, as well as small upstarts Atlas Mining and BC Iron.
