Jun 16, 2014

The oncoming storm that will smash the mining boom in the Pilbara

A confluence of three factors are converging on the Pilbara's iron ore mines. The result will be a once-per-century economic cyclone, and miners better batten down the hatches.

Last week, Morgan Stanley finally broke the recent trend of broker upgrades to iron ore stocks. It has been equal parts amusing and disturbing watching the sell-side weathermen adjust their frail instruments before the building tempest. Little anemometers are spinning wildly off their axles. Plunging mercury has cracked the baubled reservoir at the thermometer’s base and is draining into the earth. Barometric needles are bent like gymnasts around the pin marking lowest ever readings. And still they don’t get it, blissfully recommending clients wade into the tumult.

A convergence of three storms is headed for the Pilbara, and when it breaks a generation of miners’ hopes, dreams, shacks and towers will have been swept into an indifferent Indian Ocean. Only then will patient investors rescue the gems from under mounds of flotsam.

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5 thoughts on “The oncoming storm that will smash the mining boom in the Pilbara

  1. Reechard

    Just because you have a hyphen in your name does not mean you should write like a pretentious-wanker.

  2. Reechard

    This coming glut of iron ore and coal and workforce could be absorbed for another 10 years at least, by building the new Zero CO2 Emitting, Clean Energy Australia, as detailed by Beyond Zero Emissions. (

  3. Aidan Stanger

    The usual forecasts the price will stay high are based on the claim that most of the ore comes from mines in China that will close if the price goes down much. Any commentary that ignores this is unreliable.

  4. Barking


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