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Junior explorers cautious about future
By Karyn Wilson
Wednesday, 19/11/2008
The national commodities forecaster is defying the current doom and gloom view of the mining industry saying investment in the sector is stronger now than it was at this time last year.
ABARE says there's a planned $67 billion dollars worth of mines and energy projects on the drawing board.
The smaller companies in the industry, known as junior miners, also believe their future looks positive.
A conference has wrapped up in Mt Isa this week with them saying they're tightening their belts because they're feeling the effects of a volitile market and the global credit squeeze.
"Certainly, we are not expanding right now, we have a steady approach to exploring over a long period of time rather than rapid expansion," says Rob Rutherfod from Red Metal.
"But the exploration is pretty successful."
Phosphate Australia chairman Jim Richards says his company is actively drilling and their operations will withstand the current global financial crisis.
"Phosphate is certainly holding out well at the moment; we're pretty happy with prices because of the quality of our project," he says.
MM Mining project geologist Dr Helen Tompkins says her company is in the early stages of development but they do have a number of prospects.
"We are concentrating on projects right now and if they successful, we would push them along," Ms Tompkins says.
"Although in the current markets the pace of exploration changes a little bit while they can last as long as they can."
In this report: Rob Rutherfod, Red Metal; Jim Richards, chairman, Phosphate Australia; Dr Helen Tomkins, project geologist, MM Mining.
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