Western Australia mining industry hopes commodities prices will rebound

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Image credit: Flickr user The Puzzler

Following a tempestuous 2013, the industry groups in Western Australia hope that the mining industry will find the strength to recover.  

Image credit: Flickr user The Puzzler
Image credit: Flickr user The Puzzler

Prices of the most crucial commodities, like iron ore and gold, which plummeted last year, are expected to recover and reach a stable level this year.

After 2013 was marked by numerous job cuts, closed mines and cost pressures, this 2014 is expected to bring about positive change.

According to an article featured on ABC, most of these negative developments which struck a significant blow on several levels came about as the result of a downturn in the mining industry.

The Chamber of Minerals and Energy of Western Australia already expressed hope for a positive outcome this 2014, during which the price of key commodities, such as gold, is expected to improve.

“We’re certainly still in a transition phase at the moment, particularly for our bulk commodities of iron ore and LNG,” said Mr Bruce Campbell-Fraser from the Chamber of Minerals and Energy.

“We’ve seen those expansion projects come to their natural conclusion, but that means we’ll certainly be exporting more volumes and a greater return for the state government through royalties and the federal government through other taxes as well.”

According to him, the mining industry is guaranteed to see much needed and welcomed benefits from government efforts aimed at reducing red and green tape.

Although at a steady pace, improvements in the mining industry are expected to come about. Industry groups are hopeful that 2014 will be remembered for the much needed positive developments.