Article writing on: Summary of business environment and its risks

Summary

The main issue which has been highlighted in the article “More big mine projects at risk” was to hitch the reliability of delivering a surplus in this particular year. This would require high levels of revenues from the export commodities.

Application of the concepts

After reading the article, there are various concepts of business environment which have been discussed within the same. The major concepts which have been highlighted within the article i.e. “More big mine projects at risk” is in regards to political & economical factors. After analyzing the entire article some of the aspects which have been highlighted is in regards to the taxation policy, stability of the government, growth in spending power, customer liquidations, recession or boom & rate of inflation (Lucas, 2010).

The article majorly highlights a decline in the resources iron ore mine in the Western Australia & Xstrata coalmine situated in Queensland. These two iron ore mines have been referred to as the biggest mining projects after the Olympic Dam. Based upon the various analysts, Wandoan project is in danger of collapsing due to a decline in the overall coal prices as well as costs involved.

According to Reserve Bank of Australia, abandonment of some projects will lead to the reduction in the levels of the pressure in the economy this will portray a happy sign for the Central Bank to do high levels of investment boom to taper off. Based upon the entire discussion, when it was asked whether the resources boom was faltering Mr. Stevens told the parliamentary committee that some projects should not be done or implemented. BHP’s decision to put on holds the expansion of the Olympic Dam in South Australia has led the various international investors who are aware of the high cost of labor, accommodation, equipment & regulatory measures as compared to the other countries (Stevis & Assetto, 2001). Mr. Steven believed in the philosophy that, the prices of the resource projects is likely to increase in a year or two. After that, the rate might decline & at the same time the export with the help of the shipments will be on peak. It can also be seen that, till that time other resources such as residential and non residential resources might be on a rise. Based upon the shadow treasurer, the statement given by Ferguson was quite apt that the resource boom was ending (Siebert, 2008).

Analyze

Based upon the analyses of the article it can be seen that, there will be a cut from the Adelaide offices employees from an approximate number of 190 till 50. This will be due to the decision of the construction of the project i.e. Olympic Dam (Kretser & Grebber, 2012). The decision to construct the same would be referred to as the biggest decisions by the Government of South Australia (labor) in order to create employment for more than thousands of people.

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