QUEENSLAND Resources Council’s chief executive said there were signs of a recovery in the mining industry in North West Queensland.
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“Are there green shoots?” Michael Roche asked rhetorically at the 2016 Mining Convention in Brisbane on Thursday.
“Technically the answer is yes.
“However, I don’t think we should get too excited too soon.”
Mr Roche said Evolution Mining’s stake in Glencore’s Ernest Henry Mine in Cloncurry, announced on Wednesday, was a “remarkable but clearly win-win linkup.”
He also reflected on current market trends with gold and copper and what it could mean for the region.
“At the end of July gold was some 27 per cent above its end-2015 price.
“This is occurring against a backdrop of a low interest rate environment and ongoing economic uncertainty globally.
“Interesting transactions continue to emerge in the gold space,” Mr Roche said.
Mr Roche said that there had not been a jump in copper prices but there were signs of promising investment.
“Good businesses are producing cash and we are seeing plenty of interest in bringing on new supply in North West Queensland.
“CuDeco delivered its first concentrate to the Port of Townsville and Altona Mining is getting closer to concluding its arrangements with its Chinese partner for the Cloncurry Copper Project.
“Elsewhere in metals we have seen encouraging improvements in pricing for zinc and nickel.”
He recognised the “worst downturn in more than 30 years” for the sector.
“It was the perfect storm. One moment China was booming and so was the global economy, but seemingly within the blink of an eye, that all collapsed.
“Looking back, while the collapse seemed fast at the time, we always knew that the sector would transition from a construction ‘boom’ phase to an enhanced production phase.”