Australian Mining Industry Wobbling as Commodities Plummet

Amid reports of falling commodities prices, the Australian mining industry's response does not strike a note of confidence. First, it's been reported that with the slump in mining comes a natural trend away from mining-related office space. Global property news service PropertyWire reports a substantial drop in the number of square meters reserved for such purpose. Second, the miners themselves face concerns; after all, if their export markets shrink, the number of employed workers will naturally shrink as well. According to ABC Rural, as commodity prices tumble, investors are also starting to walk away. None of these factors are good for morale, of course. Neither is the fact that some workers have already lost their jobs.

"We've just lost 140 workers at Prominent Hill, which is 20 kilometres further up the road," [a source] said. "So that's already 140 people already back in the unemployed section looking for work. It doesn't look good for people at the moment" (Rural).

Unfortunately, the disheartening news doesn't stop there. On top of everything else, the Australian government has also been accused of shady financial practices intended to save the iron ore sector. According to one American iron ore miner, the government is "'manipulating' its currency to save iron ore experts," although at the time this blog post is being written, this accusation comes from only a single voice. We'll keep an eye out for other news stories and voices claiming the same. It's our hope that the situation in Australia will turn around soon; that jobs will be saved; and the industry will maintain the solid reputation that it has held for decades. The commodities markets are notorious for their big price swings and we sincerely hope that the recent slump in commodity prices turns around due to renewed demand as soon as possible. Remember that we carry a full complement of OTR tires for all of your mining needs. We routinely ship mining equipment tires to Australian mines. For the best deals around, contact us!  

Image credit: Flag of Australia at Wikimedia Commons. Yellow line arrow added in house.

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