The National Post is Canada’s second largest national paper.
Australia’s road to resource riches is proving bumpier than first thought as miners struggle to meet ambitious investment plans, another reason for the country’s central bank to go slow on further interest rate rises.
The Reserve Bank of Australia (RBA) has long assumed it would have to tighten policy to temper inflationary pressures from a mining boom. But the sector’s race to meet red-hot demand in China and India is running into other constraints, from dire weather to a dearth of skilled labour.
“The mad rush to spend is already dissolving into delays and cost overruns, so there’s no way the mining industry is going to meet its investment targets,” said Brian Redican, a senior economist at Macquarie.
A record A$430-billion ($442billion) in resources investment is either underway or on the drawing board in Australia, a real stretch for an economy with an annual output of A$1.3-trillion. Continue Reading →