Summary: The Australian mining industry has a long history of fabulous booms and long periods of correction, according to senior statesman Hugh Morgan. The current environment has many parallels with the end of a previous boom in 1972 – back then, it was about satisfying the needs of Japan, while now the focus is on China. But as China switches to a focus on services, the iron ore and coal boom has run its course.
Key take-out: Look more closely at base metals, industrial metals and even gold. Iron ore and coal companies could be set for a long period of watching costs and ore grade as prospects of a recovery are uncertain.