A report has been released arguing against predictions that Australia’s mining boom will end sooner than expected.
In response to predictions by Deloitte Access Economics that the mining boom will end in two years, property market analyst Simon Pressley describes it not as a mining boom, but as a “resources revolution”.
Mr Pressley, from Propertyology – Property market analyst and Australia’s (2012) Buyer’s Agent of the Year – writes in the Propertyology Report from 27 July that suggestions the boom will end by 2015 are misleading.
“What has been overlooked,” writes Mr Pressley, “is what happens when construction of these projects is finished – they a built for a purpose not for practice.”
“It’s not until key infrastructure such as processing plants, ports, pipelines and railways are constructed that those valuable resources below the dirt can be converted to dollars. That’s when export commodities such as coal, gas and iron ore are processed and exported to the likes of China, India, Japan, South Korea and France,” Mr Pressley writes.
Mr Pressley said that to hear reports of the boom ending in two years was a shock. “Had the reporting stemmed from an article written by some random journo I would have given it the usual through-to-the-keeper treatment,” he said. “To hear that credible economics firm, Deloitte Access Economics, was the apparent source of these statements almost made me choke on my coffee.”