Australian Resource Companies still going strong despite recent stock market uncertainty
Currently, world stock markets are watching the US meltdown in fright. Not so for Australian resource companies says mining services acquisition expert Alvin Donovan.


/Engineering News Articles/ - AUSTRALIA, February 03, 2008 - Currently, world stock markets are watching the US meltdown in fright. Not so for Australian resource companies says mining services acquisition expert Alvin Donovan.

That is because Australia is in the midst of a mining boom, driven by demand growth in commodity markets that will be sustained for many years to come. Australia's major trading partners, including Japan,China, India and Russia have increasing demands for steel production, energy generation and transportation, all of which demand mining resources that Australia supplies.

Australia is the world's largest exporter of black coal, bauxite, alumina, diamonds and mineral sands - and is a substantial exporter of iron ore, aluminium, lead, zinc, copper, gold and uranium.

In australia there remains a widespread expectation that contract prices for Australia's key exports of coal and iron ore will rise again this year.

"Australian resource companies, especially the mining services sector are facing continued boom times and growth" say Alvin Donovan

Donovan states that "it has been said that China is building one coal powered electricity plant a week and have an insatiable appetite for coal with no end in sight." This points to ever increasing profits for the companies who service the coal industry. The companies to watch for are the ones who provide the services to the coal mining and iron ore industry rather than the exploration companies themselves.

This will give you exposure to the mining sector without the risks inherent in exploration and mining activities, following the age old business adage that it is better to sell shovels than dig for gold. Global industrial production is forecast to remain strong which provides the fundamental underlying demand for minerals and will ensure ongoing demand for mining services companies.

Donovan explains "Focus on mining services companies who provide services to the majors like BHP an Rio Tinto". The reason being is that even if the major companies face a down year they will still need to service their equipment and will have the cash reserves to pay for it.

Furthermore keep an eye out for companies who have been in business at least 10 years and maybe more as those have faced previous downturns and kept surviving and prospering.

About Alvin Donovan

Alvin Donovan has over 20 years experience in investment banking and is considered by many to be todays leading mining services acquisition expert. Alvin is a past consultant/faculty member for most of the world's largest management institutes including the American Management Association and the National Management Association in the USA, Management Centre Europe in Belgium, IMI in Dublin, OPWZ in Vienna, ZFU in Zurich, IEP of Amsterdam, APM of Bangkok, RAYMA in Kuala Lumpur and LPMB in Jakarta. He has lectured/consulted to top level executives from most of the world's largest corporations.

Further Related Resources:


Press Release Contact Information:

Alvin donovan
Full Mining Services
owner
australia
Voice: 617-3369-4065