Jeffa.Net

Is there is about to a mining slow down in Western Australia.

Well, there’s a few ways to look at this.
Some economists are predicting a slowdown as less projects are being cleared etc. I would say yes, a slowdown will occur, but not for the next 5 years at least.

Of course, the word slowdown means only one thing.. Profit.
How did I come to that??
Look into the past, even just the mention of the word gets people worried. They start to look at cut backs on staff, spending etc. Mainly on staff because the “current global circumstances” means that we need to keep our backs shaved and you’re excess hair to that requirement.

So BHP have started this off, apparently some staff have taken pay cuts but it’s clear that a round of redundancies are not fair off either.

http://www.bloomberg.com/news/2011-06-02/sudden-china-slowdown-may-mean-50-to-75-drop-in-commodities-s-p-says.html

Yeah that didn’t really happen did it?

http://business.time.com/2012/07/26/chinas-economic-slowdown-why-stimulus-is-a-bad-idea/

This may however have a more accurate target on it.
Still, does this mean that the current level of production in Western Australia will slow down all that much?? I’m not so sure it will.
I do however support lower prices for Iron ore.

Let’s play this game, W.A mining companies say, right, we’re turning the tap off, we’re closing multiple mines and reducing the loads on others, approx 50,000 jobs will go.
What does this mean for Perth?
Depends how you look at it. I say it’s great, housing prices will fall as over-mortgaged families scramble to sell their houses, rent’s will drop because the miners are no longer earning $100k+ and the cost of living might drop even further.

On the other hand, what does it say for crime?
Times of tightness normally mean two things.
An increase in alcohol sales and a sudden rise in violence. Now the two might be linked together but more or less it means that there will be more domestic violence, more robberies and home invasions and most likely more car break-ins.

How do we fix this??.
Invest now – In a growing state.. Start strategic planning on new growth areas like Yanchep. Perhaps separate W.A into 2 states and grow the north west corridor. Perhaps build that pipeline from Ord River to Perth?.

The only way to stem the job losses from the mining boom is to invest in other areas.. So do it now.