Mining Investment in Australia

Mining in Western Australia is big business and accounts for a sizeable percent of the State’s and Australia’s income from exports alone. The state of WA facilitated over one hundred mining projects and created jobs for over one hundred thousand people in the industry. Mining has transformed the area into a hive of industry and the growth in population has led to increased investment in housing and infrastructure and consumer spending.


Just recently BHP announced  it was investing additional money into a current 3.2 billion project in the South Flank mine and this signals their confidence in the mining industry in this region. This additional influx of investment will have a knock-on effect in creating many more additional opportunities in the building industry, including opportunities for companies like RMEWA to gain new hire contracts for their massive range of excavators.

More Jobs.

The state is currently very optimistic about what lies ahead due to this inward investment by BHP and they have also pledged to invest in water and infrastructure projects to meet the demands of this massive increase in investment. Due to this upsurge in additional business, the area may fall short in its need for workers and so this will signal more investment in skills creation opportunities and the overall job market.

The Knock On Effect.

The capital investment in this mine and others will create a multiplier effect around the region and also further afield as more and more people and businesses set up in the area. This is a time of an exciting growth period in WA and Australia in general and many regions in WA will benefit from  increased inward investment.  This increase in investment can surely attract bigger population growth which will in turn lead to higher retail activities and many other related services.

Out With The Old.

One can only be impressed by the sheer size of this investment by BHP and other companies and this vast operation of the South Flank project for iron ore, is seen as having real potential to replace the quite old Yandi operation. Companies like Fluor have already been awarded lucrative contracts in their project and construction services and their president is equally optimistic about the mining industry at this current time.

Safe Investment.

While BHP has not received board approval for this huge project yet, it will be forthcoming and they mean to begin production in 2021 thus cementing the fact that the mining industry in Australia still offers an ongoing safe investment opportunity. Once South Flank goes ahead, it will become the biggest ore processing facility in the whole world and this will bring further attention to the mining industry here.

A Sensible investment.

Investing in mining in Australia continues to be attractive because of the generally fixed cost of production that occurs once a mine is up and running. The production costs don’t usually increase even though the price of the ore does. Therefore, increased prices in ore means increased profits. BHP and other companies throughout the mining sector will provide massive improvements in cost efficiency through improved technology which once again increases profits. There really never has been a better time to invest.

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