"Reserve Bank governor Glenn Stevens has weighed in on the debate over a possible end of Australia’s mining boom saying he sees no sign the boom is over.
Mr Stevens also signalled that interest rates are likely to stay on hold unless there is a drastic change to its optimistic outlook for the economy."
"Mr Stevens said BHP Billiton’s move to shelve the $20 billion Olympic Dam expansion does not signal a peak in resources investment, and more mooted mining projects should probably be scrapped."
"The Reserve expects mining investment to remain at historic highs of about $145 billion a year or 9 per cent the economy, peaking in a year or two."
"With mining companies already facing fierce competition for labour and capital, Mr Stevens said it made no sense for all possible projects to go ahead.
‘‘There are a vast number of [possible projects] which, I think in truth really shouldn’t be done because if they were all attempted, there’s already pressure on the cost side for resources companies,’’ he said in Canberra."
