Moody’s Says Australian Mining Industry to Continue Benefitting from Strong Chinese Demand for Commodities
By Vittorio Hernandez | May 16, 2014 8:27 AM EST
Despite a $30-billion forecast budget deficit for 2014-15, rating agency Moody's kept Australia's AAA credit rating this week. It also said that compared to other nations with the same tripe A rating, Canberra's growth outlook is still favourable.
A Moody's sign is shown outside a New York office.
Australia has the second-lowest level of government debt among Moody's 14 AAA-rated countries.
Moody's likewise said that the Australian mining industry would continue to benefit from the strong Chinese demand for commodities even if China's growth would slow down.
According to Business Spectator, Guangdong Rising Assets Management offered to buy for $1.5 billion Pan-Aust, a copper producer focused on Laos, while in early May, Chinese steel giant Baosteel partnered with Aurizon, a freight operator, to bid $1.4 billion for Aquila Resources.
Melbourne-based MMG, a Chinese-controlled miner, bought the Las Bambas copper project in Peru for $6 billion which made MMG one of the largest global producers of copper.
"We've already been seeing iron ore exports going up at a very rapid rate over the last year, so the volume of exports has actually already begun to see the benefit of that, despite somewhat slower growth in China and somewhat lower prices," AAP quoted Moody's Senior Vice President Steven Hess.
Hess added, "We expect that to continue for at least several years to come and that will underpin demand for Australian minerals and other commodities."
From January to April, mining acquisitions by Chinese firms went up 63 per cent, and the figure is expected to even expand as China relaxes its outbound investment regulations. Beginning May 8, deals below $1 billion and outside the sensitive sectors no longer need to secure regulatory approval from the National Development and Reform Commission.
To contact the editor, e-mail:
Most Popular Slideshows
- Taylor Swift Named Forbes' Second Highest Paid Country Musician [PHOTOS]
- Lunch with the Gods: Pope Francis Eats with Vatican Workers in Cafeteria
Join the Conversation
- Google Nexus 6, 8 with Android L on Release Date Promises Killer Mobile Device Experience
- iPhone 6 Release Date Relevance to iOS Newbies: Specs Meaning, Price Considerations
- Killer Whales Gobble Japanese Whaling Crew
- 12-inch MacBook Apple Retina and 2014 MacBook Pro to Feature Liquid Sensors, Release in October
- The Pirate Bay Releases ‘The Mobile Bay’: Mobile Torrent Download Made Easier but Remains Illegal
- 5 Marketing Nuggets We Can All Learn From Lady Gaga
- Malaysia Airlines Considers Changing Name After MH370 and MH17 Tragedies