Australia hits record spending in mining
Source: Bloomberg News |
June 18, 2012, Monday
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Print Edition
Print Edition
MINERAL exploration spending in Australia, the world's biggest iron ore exporter, reached a record in March and has risen 35 percent since a new policy to tax carbon was unveiled last year, the government said.
Spending rose 12 percent to a record A$1.09 billion (US$1.09 billion) in the March quarter and the investment pipeline in the resources industry reached an estimated A$500 billion on demand from Asia, Treasurer Wayne Swan said in his weekly economic note yesterday. The tax on carbon emissions, starting July 1, will reap about A$6.5 billion over two years from the country's biggest mining companies including BHP Billiton Ltd.
"It's yet another reality check for those who try to talk down the outlook for our resources sector or make ridiculous claims that important economic reforms are hurting investment," Swan said. "Asia's rise will create demand for a lot more than just our iron ore and coal."
Australia expects to raise A$24.7 billion in four years from the tax as the government tries to reduce emissions and spur investment in cleaner energy. While a resources boom has made Australia one of the fastest-growing economies in the developed world, the policy isn't helping Prime Minister Julia Gillard's approval ratings as the local currency's strength against the US dollar hits the country's tourism, manufacturing and retail industries.
"While it's clear not everybody's in the fast lane, it's equally clear that the fundamentals of our economy are rock solid," Swan said.
The mining boom is lifting the economy. Australia's annual growth in January to March was the fastest since the third quarter of 2007, a government report showed this month. Growth averaged over the past two quarters was the fastest among countries with Group of 10 currencies tracked by Bloomberg News.
Still, a Newspoll survey on Tuesday showed support for Gillard's ruling Labor Party slid even after the central bank cut interest rates, the economy grew twice as fast as forecast, and employment growth accelerated.
Spending rose 12 percent to a record A$1.09 billion (US$1.09 billion) in the March quarter and the investment pipeline in the resources industry reached an estimated A$500 billion on demand from Asia, Treasurer Wayne Swan said in his weekly economic note yesterday. The tax on carbon emissions, starting July 1, will reap about A$6.5 billion over two years from the country's biggest mining companies including BHP Billiton Ltd.
"It's yet another reality check for those who try to talk down the outlook for our resources sector or make ridiculous claims that important economic reforms are hurting investment," Swan said. "Asia's rise will create demand for a lot more than just our iron ore and coal."
Australia expects to raise A$24.7 billion in four years from the tax as the government tries to reduce emissions and spur investment in cleaner energy. While a resources boom has made Australia one of the fastest-growing economies in the developed world, the policy isn't helping Prime Minister Julia Gillard's approval ratings as the local currency's strength against the US dollar hits the country's tourism, manufacturing and retail industries.
"While it's clear not everybody's in the fast lane, it's equally clear that the fundamentals of our economy are rock solid," Swan said.
The mining boom is lifting the economy. Australia's annual growth in January to March was the fastest since the third quarter of 2007, a government report showed this month. Growth averaged over the past two quarters was the fastest among countries with Group of 10 currencies tracked by Bloomberg News.
Still, a Newspoll survey on Tuesday showed support for Gillard's ruling Labor Party slid even after the central bank cut interest rates, the economy grew twice as fast as forecast, and employment growth accelerated.
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