About every thirty years, there is an almighty mining boom, followed by busts, and many long years waiting for the next boom. The most recent one was driven by China’s surge in demand for the minerals and started in the early 2000s.
The Aussie dollar hit US$1.10 and BHP reached $50. In the four years following the 2011 peak, prices collapsed by up to 80%. The crisis ended when the Chinese government announced new stimulus measures at the Peoples’ National Congress in March 2016, targeting 6.5% growth.
Come 2018, the AUD has regained some of its strength and commodities prices have firmed and the worst seems to be over - until next time.
