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.
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:
Join the Conversation
- While Australian Miners Declare End of Massive Expansion of Iron Ore, Gina Rinehart Bucks Trend & Starts Export From New Mine
- Australian Stock Market Report – Midday November 25, 2014
- Australian Stock Market Report – Morning November 24, 2014
- Australian Stock Market Report – Morning November 25, 2014
- Australian Stock Market Report – Afternoon November 24, 2014
- Kobani ISIS Fighter Sends Out Desperate Message For Prayers And Support: Euphoria Turns Into Desperation As Kurds Advance
- Chris Algieri’s Battered Face Trends On Social Media
- Home Depot Early Black Friday 2014 Sale Up To Nov. 29, 2014 Includes Special Buys On Appliances Such As Samsung Refrigerators, Whirlpool Electric Ranges And Hoover Vacuum Cleaners
- Black Friday Sale 2014 Deals From Amazon On Smartphones, TVs, Headsets And More
- Microsoft Band Runs Out Of Stock, But Offers $10 Gift Voucher To Wait-Listed Customers
- Andrew Robb Asks Obama Not to ‘Lecture’ Australia on Climate Change
- Highest Paid NBA Players 2014: NBA Stars Who Earn More Than LeBron James