Professionals Fyson & Associates
96 Brookman Street Kalgoorlie
08 9080 9200
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We have been saying for some time that the fundamentals of our area are very sound in spite of a very poor market that has been with us for the best part of 8 years, with a few short respites.
The key to change was always going to be a settling down of the frenetic mine construction in the Pilbara, an easing of pressure on the workforce and costs as well as a global recovery in the main commodities in our region being Gold and Nickel along with the emergence of new technology metals like Lithium and other rare earths.
The realisation that nuclear energy as a global source of base load power is needed to replace coal is gaining public acceptance hence the resurgence of Uranium which is abundant in our area.
Of all the metals Nickel continues to be the one that confounds. It shows positive signs of recovery then slips back to below $US 4 a lb in spite of the stock pile on the London Metals Exchange falling by 70,000 tons over the last 12 months and continuing on a downward trend.
It is encouraging to get support from others for my view that the Goldfields and particularly Kalgoorlie Boulder, Kambalda and the northern Goldfields and on the verge of a new era.
John Bowler, Mayor of the City of Kalgoorlie Boulder has made very similar observations and come to the same conclusions as I have on the state of our local economy. It is nice to have someone else in a position of influence beating the same drum.
The other is by Nick Evans and reports on the press release by Eddie Haegel, the new Boss of BHP Billiton Nickel West division on the future of Nickel West. This is the most significant news report for the Goldfields for many years and will instill a great deal of confidence into our region which should result in an increase in activity and with it a recovery of so many of the fundamental components of our economy. There has been a very positive reaction locally with one thing standing out being the call to domicile any expanded workforce locally and avoid the short-termism of FIFO. This is particularly good news for Kambalda which has suffered more than most with very high vacancy rates, low rentals and a stagnant sales market.
In the same edition of the Kalgoorlie Miner is a lift out titled ‘RAY of Hope, a Celebration of Mining 2016’ which I recommend everyone obtains a copy to read as it demonstrates that money, not just words is being committed to the area.
We still have a long way to go but it seems that the serious money is backing a return to prosperity for the nickel industry, our city and the region.