WA boom levelling out, says minister

4 Oct 2012, 5:52 pm   -   Source: AAP
The WA resources boom is showing signs of levelling out, the state's mining minister says. (AAP)

The WA resources boom is showing signs of levelling out, the state's mining minister says. (AAP)

The WA resources boom is showing signs of levelling out but the sector is in a very sound position, the state's mines minister says.

The resources boom in Western Australia is showing signs of levelling out rather than bracing for a bust, the state's mines and petroleum minister Norman Moore says.

The sector was in a very sound position, despite recent debate about whether the resources boom was over, Mr Moore said.

"Whilst the WA resources industry has grown quickly over the past decade, it's now showing signs of levelling rather than falling sharply," Mr Moore told a nickel mining conference in Perth on Thursday.

"The resources boom probably can be considered largely as a period of strong construction growth at a time when commodity prices also reached record highs, creating the impression of boom conditions."

He said recent commodity price falls had fed into predictions about the end of the boom.

"However, this fails to recognise the continued demand for resources, albeit at lower prices, and it also doesn't recognise that many projects are now moving from the construction phase into the production phase."

He added the slowdown in the resources industry provided much needed breathing space to deal with skills shortages and cost pressures.

The nickel sector in WA should expect some short-term knocks, but prices would rebound, Mr Moore said.

"The current price slump has reached levels not seen since mid-2009 in the midst of the global financial crisis and this is cause for concern.

"If the trend continues we might see other mines closing."

Nickel exploration was likely to decrease in the year ahead, Mr Moore said.

Mining

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