By: Bryant van Dijken
One of the biggest booms has unfortunately come to an end, (not as big as BOOM Radio of course), but it is still pretty big.
The Mining Boom, which started in 2003 due to a huge influx of demand from China as well as other Asian Countries, and an interest of commodities such as Iron Ore and coal, due to a rise in prices, has unfortunately come to an all timely end.
With companies such as BHP Billiton and Rio Tinto investing in creating any sort of supply, no one had expected such a surge in demand and the swift rise in prices.
Prices went up from $20 dollars a tonne to $30 dollars and eventually peaked at $170 dollars a tonne for such commodities as coal and Iron Ore.
Some service companies, in particular those who were supplying the FIFO chains were raking in the benefits.
Prices for a house in the Pilbara experienced some of the quickest rises, with houses that would usually cost you a measly $200,000 Dollars, rose to an astonishing $1 Million Dollars a house and no one could believe their luck.
But, if you thought that those mining companies were in luck, some of the smaller mining companies including Fortescue Metals became pretty much money printing operation’s in such a short period of time.
Australia was the major winner in the mining boom and they almost were able to escape the whole GFC unscathed, which was a major step as most of the other countries had gone through the struggles of rigorous hard times. You could pretty much say that mining had kept this country afloat, and also on top from going through the pain of what a host of other countries went through including the United States of America, who had gone through so much pain that they are still struggling to pay off their debt today.
However, all good things must come to a timely end, as the saying goes…. The Mining Boom ended and it meant that a whole lot of companies included in the boom were starting to lose a lot of money that they had made and deserved over time. People were put under pressure for their jobs and that was it, people were not just struggling to hold on to a job, they were also trying to remain financially stable.
This was an impact on their Lives, and the workers and employees fell in to depression due to financial hard ship.
Hopefully people can work themselves out and get back on their feet in the near future.
With Government also getting the blame for not understanding the benefits and racking up the profits, maybe there will also be another Mining Boom in the near Future…. Time will only tell.