Is Australia Entering a China-Driven 20-Year Resources Boom? (Part 2 of 2)

PERTH, AUSTRALIA--March 12, 2010--Researched by Industrial Info Resources (Sugar Land, Texas)--The late 1990s and early 2000s were very quiet times in the Australian resources industry. Commodity prices were low--so low that iron ore mining companies would simply shut down production when a problem occurred, rather than spend money on repairs and maintenance. There were no major LNG projects under way: Woodside's (ASX:WPL) (Perth, Australia) fourth train in North West Australia had recently been completed, and no other LNG projects were on the horizon. About 2003, the situation began improving. Demand for commodities was on the rise, and prices began increasing. The major miners began considering the expansion of their production capacities, and significant projects were planned. By 2005, things were in full swing. BHP Billiton (NYSE:BHP) (Melbourne, Australia) had mapped out rapid-growth projects aimed at doubling the company's production output. Likewise, Rio Tinto plc (NYSE:RTP) (London, England) publicly stated that the company intended to double its output of ship-borne iron ore. The $50 billion Gorgon LNG project was in the late feasibility stage, and the question seemed to be not whether the project should proceed, but how many production trains should be built.

Other companies featured: Chevron Corporation (NYSE:CVX)