NAB Chief Optimistic About Mining

Cameron Clyne, the head of the National Australia Bank, has expressed confidence on the mining industry. He said that there is still a significant projects pipeline that would sustain the mining boom for years to come.

Clyne said that it appears commodity prices have peaked. He said these are also coming off even though they remain high. He added that he believes there is still a significant pipeline of investments for the mining industry and that there is no indication that investors will pull the plug anytime soon.

The opinions of the NAB chief came after a series of reports saying the mining boom in the country is over. Just last week, BHP Billiton announced that it is canceling the Olympic Dam expansion program, which is estimated at about $20 billion.

Clyne also remarked that there is nothing to suggest that a collapse is about to happen. He said that although foreign investors are concerned with high property prices in the country, they remain positive in investing.

He explained that supply concerns, strong net migration, and high loan proportions remain favorable to investor.

Glenn Stevens, the governor of Reserve Bank, echoed Clyne’s sentiments. He said that the public should not be worried as there are no signs that the mining boom is over.

During a parliamentary hearing, Stevens said that he remains cautiously optimistic. He said he’d rather see things as half-full instead of half-empty.

The RBA governor also said that the cancellation of the Olympic Dam expansion should not be seen as mining bust and is not an indication that the country has reached the peak of resource investment.