Mining industry 'booming' as copper jumps to highest level in 10 years by Sky News Australia on YouTube
Mining industry 'booming' as copper jumps to highest level in 10 years
Sky News Business Editor Ross Greenwood says the mining industry is “booming” with copper prices jumping to the highest level in 10 years overnight and iron ore at record highs. However, Mr Greenwood said the situation is different to the last time copper prices were above $10,000 - back in 2011 - and the Australian dollar topped out at $1.10 USD. “There’s a few subtle differences, one is that you’re not getting the massive amount of mining development going on and so that created labour shortages but also clearly was a significant boost to Australia’s economy,” he said. Another difference is the Reserve Bank is also deliberately trying to keep the Australian dollar down, according to Mr Greenwood. “So the Reserve Bank is deliberately printing $200 billion at the moment … buying back bonds, stimulating the economy as a result of the recession and the pandemic,” he said. Mr Greenwood said the Reserve Bank has been successful for now but the more the commodity prices “pump up” the economy the harder it will be for them to keep the Australian dollar below 80 US cents.
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Sky News Business Editor Ross Greenwood says the mining industry is “booming” with copper prices jumping to the highest level in 10 years overnight and iron ore at record highs. However, Mr Greenwood said the situation is different to the last time copper prices were above $10,000 - back in 2011 - and the Australian dollar topped out at $1.10 USD. “There’s a few subtle differences, one is that you’re not getting the massive amount of mining development going on and so that created labour shortages but also clearly was a significant boost to Australia’s economy,” he said. Another difference is the Reserve Bank is also deliberately trying to keep the Australian dollar down, according to Mr Greenwood. “So the Reserve Bank is deliberately printing $200 billion at the moment … buying back bonds, stimulating the economy as a result of the recession and the pandemic,” he said. Mr Greenwood said the Reserve Bank has been successful for now but the more the commodity prices “pump up” the economy the harder it will be for them to keep the Australian dollar below 80 US cents.
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