Australia to continue benefitting from mining boom in coming years

Australia to continue benefitting from mining boom in coming yearsTreasury secretary Martin Parkinson has said that the mining boom in the country will continue to benefit the Australian economy in the years to come.

The mining sector's shares in the country's economy have risen from 5 per cent to more than 10 per cent and it is likely to remain at that level in the several years to come. The sector has seen a lot of investment from international players in the recent years fuelled by increased demand from emerging countries in Asia and beyond.

However, Many believe that the resource boom in Australia, which helped the country better face the effects of a global economic slowdown, might be getting over. The mining industry is losing its momentum mainly due to weak demand from prime customer, China.

There have been major roll backs of projects and cuts in the country. BHP Billiton last week cancelled the $20 billion expansion of the Olympic Dam site and this has raised concerns over the future of projects including the expansion of Port Hedland iron ore export facilities.

Opposition Leader Tony Abbott said that the slowing resource sector is due to the mining tax that came into effect this July. The opposition is blaming the government for anti mining policies to discourage the boom in the sector.