Over the last two years it is no secret that the Australian market has shifted from a boom to what some are calling a gloom.
Western Australia, enriched in minerals, has seen a decline in industrial output as a direct result of declining commodity prices.
Gareth Parker, State Political Editor wrote an article in January 2016, referencing historical Western Australia (WA) Treasury predictions that iron ore would average $US116.70 a tonne in 2013-14. The average price per tonne actually reached $US122.80 during this period. Demand from China thereafter eased in the wake of Global Financial Crisis and declining internal demand with the effect that the iron ore price dropped to around $71 per tonne in 2014-15, reaching a low point of USD 37/tonne in November 2015
A similar pattern developed with other industrial bulk commodities that Australia exports, notably coal.
The decline in commodity prices of nearly 50% has rippled through the Australian economy. The mining companies, faced with massive overcapacity and shrinking demand, embarked on massive cost cutting exercises. Unfortunately this contributed to the increase in Australia’s unemployment rate. Statistics from 2013 showed unemployment at around 5%. This has subsequently increased to as high as 6.4% in September / October 2015.
Some economists have suggested that Western Australia is on the brink of a recession.
Call it what you may, there are signs that commodity prices are improving generally and further developments are now underway with many more moving towards delivery. This has, in part, been driven by further fiscal stimulus measures in China. There is further diversity occurring in the Australian mining sector, with increased world demand for minerals such as lithium and further growth is expected as a result Australia wide.
NMT is beginning to see the future potential from expansions of existing facilities, new greenfield developments and of course the development of other mineral extraction and processing facilities such as lithium, zinc and gold.
NMT’s strength in this sector has sustained the company through the current market conditions although they have had to adapt to these circumstances. Key factors have been their diversification into new markets and regions, whilst remaining focused on its core business strengths in the project cargo, heavy lift and oversize cargo sectors, and solidifying their strong relationships with its customers. Having recently successfully completed two of WA’s major mining development projects, NMT has consolidated its position in this market and enhanced their reputation within wider markets.
NMT continues to work closely with a broad range of clientele locally and offshore and the outlook is bright.