15 years of boom ahead: BHP boss

ipinvestor said:
http://au.news.yahoo.com/thewest/a/-/breaking/18408126/15-years-of-boom-ahead-bhp-boss/

Is he talking about mining construction/infrastructure development or just production boom?

If it is just production boom, there won't be any new jobs.
Click to expand...

I'm guessing it's a bit of both.

Global demand for resources will soar by up to 75 per cent over the next 15 years
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.....suggests more expansion projects.

However......

"We must all get sharper at productivity"
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and

BHP had cut its costs, producing more in less time
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......suggests something else.

"(Government's) role is to provide efficient regulatory systems, foreign, fiscal and trade policies that encourage stability, and open markets," Mr Mackenzie said. "And a modern industrial relations framework that draws employees and employers on to the same page so that all sign up to a team that wants to win."
Click to expand...

.....and then the backhander to Juliar and KRudd. In other words, "Thanks for the mess, now it's time to clean it up and be competitive again."
 
Keep en eye on media release

Andrew Forrest (FMG) addressed Kings Valley project workforce (1000 construction workers) this morning. He said that they are going to announce a new project soon....................Workers are very happy today
I think it is …………….Queens Valley (5Km from Kings) project
 
I'd be more likely to believe what the directors of BHP say if they were using their own cash to buy shares in the company. That's the ultimate show of faith.

Whatever they say in their media releases is obiter. Take it with a pinch of salt.
 
ipinvestor said:
Andrew Forrest (FMG) addressed Kings Valley project workforce (1000 construction workers) this morning. He said that they are going to announce a new project soon....................Workers are very happy today
I think it is …………….Queens Valley (5Km from Kings) project
Click to expand...

Shhhh, don't let KRudd know. :D
 
BHP have wasted truck loads of money over the last few years. Just like RIO and I few other companies I can think of.
Failed takeovers that haven't realised the synergies that they promised. Paying too much for acquisitions. Dud acquisitions. They even tried to buy RIO at the peak. Throwing money around competing with each other for staff. They are the ones mostly to blame for falling productivity.
It's a bit rich blaming others for their own failures. There's a reason Kloppers got shown the door.
 
aussies are such a fickle bunch, everyone wandering around all pessimistic and beating themselves up over nothing. with the election out the way, low interest rates and blue sky ahead it could be interesting times
 
Looking forward to September 8th. :)

Low rates, no MRRT, no CT, reduced company tax, boosted business confidence......

The mind boggles what might happen. :eek:
 
HotRod said:
Looking forward to September 8th. :)

Low rates, no MRRT, no CT, reduced company tax, boosted business confidence......

The mind boggles what might happen. :eek:
Click to expand...

The outcomes won't be known for some of those for a while, as most will be dependent on getting legislation through both houses.
So there is a possibility of uncertainty after the election followed by the possibility of a double dissolution election to follow.
Unless there is a landslide and Abbott can claim a mandate which the opposition accede to then we may still have uncertain times.
 
I would have thought that this would be due to increases in production.

The boom period was really whilst infrastructure, mine expansion plans were all under construction. A massive amount of the job increases were due to additional construction needs.

The trouble is that it might take 10,000 workers to construct all the infrastructure for a mining project, but then it might only take 1000 to run the place on a permanent basis.

I will be interested to see how this plays out in the future, as sustained demand for metals will be there, and now a lot of the mines are geared up and ready to put additional tonnes through the door when needed.

Unsure of how this scenario will impact jobs.
 
Crabnet said:
BHP have wasted truck loads of money over the last few years. Just like RIO and I few other companies I can think of.
Failed takeovers that haven't realised the synergies that they promised. Paying too much for acquisitions. Dud acquisitions. They even tried to buy RIO at the peak. Throwing money around competing with each other for staff. They are the ones mostly to blame for falling productivity.
It's a bit rich blaming others for their own failures. There's a reason Kloppers got shown the door.
Click to expand...

exactly, but then one needs to understand the psychology of CEO's:
most CEO's need to "prove" they are doing something. That "proof" is dictated by the nature of the cycle.

That's why throughout the cycle you have CEO's with different "strengths".
The expansion CEO, the mop it up and repair CEO, the chainsaw CEO if things are bad enough etc.

Warren Buffett has given extensive literature on all of this.

But unfortunately the market is like a kid on a candy hit, it wants the stimulant, and it wants it now.

A "boring but steady" CEO is rarely placed into a company (unless the company is majority controlled by an insider, and then not always).

I love cycles, there is always money to be made.
 
Ausprop said:
aussies are such a fickle bunch, everyone wandering around all pessimistic and beating themselves up over nothing. with the election out the way, low interest rates and blue sky ahead it could be interesting times
Click to expand...

I agree so long as liberal gets in.

Its amazing what confidence can do for the short run.

However again there are cycles within cycles.

Google Howard Marks of Oaktree capital on the dangers of "market confidence" on investment returns.
 
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