I agree with sentiment on both sides in this thread as valid points are made by both sides.
There is no doubt that new projects are in the pipeline in WA with Gold, IO, Nickel, Cobalt and Lithium all building momentum to restart or ramp up production. This will see some jobs generated but most will be operational as stated. The interesting side note that I often think about with mining and life in general, is the continued automation of machinery and therefore replacement of "bums on seats", this can be seen most in the big open pits of the Pilbara, yet is having less of an affect in UG mining. I work in UG mining and think the industry is doing generally well from what I see in terms of demand for specialist contractors and prospective new projects.
Working in mining, I brought a house in Kalgoorlie after the gold price crash of late 2012 and it was less that x3 of my yearly salary, I now look to buy a similar modest home in Perth and they are at x6-x7 my yearly salary. I consider myself to be in the mid-upper earning bracket and just will not take on this level of debt but unfortunately it seems to have become the norm in the past 15-20 years. I will continue renting in the deflated market and watch as the yields drops before a market correction.
The housing market is no doubt in need of a correction, I feel the Australian market is dangerously close to a collapse after years of excessive positive growth funded by cheap loans and housing porn across the TV/media. The long drawn out low interest rate era seen since 2009 (post GFC) is a new period that makes me uneasy. It leaves policy makers and financial institutions very little wiggle room when potential issues in the economy are encountered. Interest rates have to go up, however, the way the property/commercial is struggling right now I cant see this happening. I fear that many residents of WA, Australia and in fact the world have borrowed close to capacity at low interest rates and that any rise will derail the them and the system. Its a chicken and egg scenario as interest rates need to raise for the economy to 'cleanse' itself and the bad cheap debt to erased, however many public and private figures will not induce this as they will personally loose out.
I think its all abit of a mess and I feel that the GFC debt bubble has just been swept under the carpet for another similar breaking point in the future. However, this will be good for gold mining when it occurs as people return to the 'safe haven'. Oh and dont get me started on BitCoin.
