Trumpy during the last nickel crash in 2008 there was just the very thing you posted above happening. Mine closures, mass layoffs, etc. The cashed up miners getting picked up at the airport by their wives in range rovers, maloo utes, with their investment properties, boat, jetski, second car, motorbike, etc etc. were all living week to week. A lot got burned.
But because other sectors were still going ok, it didnt spread too far or for very long.
This time is very, very different.
Coal has been smashed. Iron Ore has been smashed. Oil has been smashed. Copper is getting smashed. Companies like BHP, Rio, FMG etc. have taken more hits than Jeff Fenech over the last 12 months.
They are in slash and burn mode, and like most big organisations, they will over-react and lay off more people than they probably had to. Capex, exploration, everything that is unrelated to direct process of mining the ore and getting it to the port, will be slashed, cut and burned.
All the smaller miners especially in Iron Ore are being sent to the wall.
It is a doom and gloom post because it really is doom and gloom.
The negative effects on WA are going to be enormous.
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