Trouble is Yabby that higher mineral prices induce more mining development and, ultimately, more supply.

A few more mines coming online coupled with a slight decrease in the rate of increase of demand for minerals could send prices tumbling.

Note, I'm not talking about a decrease in the demand for minerals though that could happen; I'm talking about a slowdown in the rate at which demand increases.

On the whole history has not been kind to countries that depend too much on minerals exports to pay their way. In real terms mineral prices have been in secular decline for centuries tho' there have been price spikes along the way.

For what it's worth I think demand from China will slow. India may take up the slack for a while but new capacity seems to be building up so rapidly that I think prices will take a tumble sooner rather than later, maybe before the end of this decade.

What then for Australia?

Fortunately we're not tied to a currency union so a decline in the value of the Aussie dollar will help the (inevitable) adjustment.

*Trouble is Yabby that higher mineral prices induce more mining development and, ultimately, more supply.*

I quite agree with you Steven, its just a matter of time. We saw
it all happen with iron ore before, when the Japanese brought in
production from Brazil, and the price eventually collapsed for
decades.

They are now building new mines, railways, ports etc to massively
ramp up production, but eventually that will push the price down
again. So its about being the lowest cost producer to then
survive. Already the likes of Rio and BHP are planning for that.

Hi Yabby
Yes Rio have advertised for 6000 extra worker BUT they only want SKILLED workers,more migrants coming to fill the jobs,Why not train Australians for the jobs?.

50 starting again, so why don't more Australians bother to train
for some skills? Its not Rio's job to grab them by the scruff of
the neck and put them through university.

Too many Australians think that burger flipping for a living will
do, then they are amazed when there are plenty of jobs, but
that is not enough education for well paid ones.

Yabby
It ok if you have a spear $5000 to $7000 to paid for the training But employer want 6 to 12 months or more experience.Why would companies paid for training when they just go to the government and say import more migrant's and the government says's yes no problem how many do you want.

Startingagain, if 5-7 Grand could fix training, life would be a
breeze, but it ain't that simple. To become a mining engineer, or
a geologist, or an electrician, or a fitter, or a mechanic, takes
years of dedication by the employee, not 7 Grand.

Note the number of apprentices who drop out, because they see short
term better money elsewhere, rather then slogging and learning, to
gain that qualification. I blame the parents and the system. The
system could be greatly improved, as say in Germany or Switzerland,
so that kids learn real skills. Parents need to realise that there
is more to having children then popping them out and society will
take care of the rest. Their influence and help can make a dramatic
difference.

Many companies spend a fortune on training, but they also know that
employees commonly show no loyalty. The moment that they are trained
and somebody else offers them 5c more, they are off.