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“The boom in commodity prices is over,” Martin Ferguson, minister for resources, energy and tourism, said.
“Just think about it: coking coal a short time ago was $320 per tonne, it’s now $220 per tonne; iron ore was $180 per tonne, it’s now $105; thermal coal was $220 per tonne, it’s now $80 per tonne,” he said.
“It was great for a short period of time. I think it will be a long time before we see those record commodity prices again,” he added.
But Ferguson noted that the boom continues in terms of investment in Australia, with $270 billion in committed capital investment.
Australia’s prime minister, Julia Gillard, moved to clarify her minister’s comments.
“Ferguson was talking about commodity prices [and] future investment decisions,” she said. “But Australia will continue to see that growth in resources for a long time, with investment being delivered now and further investment in the pipeline.”
BHP Billiton has mothballed a planned $20 billion investment in Olympic Dam, as lower commodities prices and higher costs brought down its core earnings by 7% to $33.75 billion for the fiscal year 2012.