Miner tears bring Spotless cheers
The end of the mining boom has been painful for most contractors, but ¬Spotless Group CEO Bruce Dixon is winning business from cost-cutting miners, according to the Australian Financial Review.
Spotless, the nation’s biggest facilities management, cleaning and catering contractor, is third in the Australian resources sector behind global giants Compass and Sodexo, but the huge easing in commodity prices has pushed miners to cut costs and contracts that were insignificant in boom times are now up for review.
“Because miners had such a bullish decade, once you won township management the miners just rolled the contracts,” Dixon said.
“Given miners are looking at cost savings and there’s pressure on margins, they are testing the market.”
US banks baulk at Abbot Point coal port expansion
Dow Jones reported Indian conglomerate Adani Enterprises has hired Morgan Stanley to sell part of its stake in the controversial Abbot Point coal port in Queensland, even as the bank has expressed concerns about the environmental impact of the port’s proposed expansion.
Adani plans to build a new terminal at Abbot Point to handle coal from its proposed Carmichael coal project, potentially one of the world’s biggest new coal mines. An expansion of the port, however, would likely lead to more ships navigating the sea lanes near the World Heritage-listed Great Barrier Reef at a time when the United Nations and green groups have warned about the long-term health of the reef.
In a letter viewed by the Wall Street Journal, Adani disclosed Morgan Stanley’s role after the bank sent a letter dated October 20 to US-based environmental group Rainforest Action Network saying it doesn’t knowingly finance extractive activities in World Heritage sites. “Morgan Stanley will not lend to or invest in the expansion of Abbot Point,” it said.
Adani said in a statement to the Wall Street Journal that funds raised from the sale of the existing terminal would be used to finance the expansion.
Worst is yet to come: Goldman Sachs
For Goldman Sachs, the worst is ahead for Australia and housing-bubble concerns will fade as the focus shifts to slowing jobs growth and inflation, reported The Age.
The only hurdle keeping the Reserve Bank of Australia from adopting an "easing bias" is a property boom, as mining investment is set to drop further along with raw material export prices and government revenue, said Goldman head of economics, commodities and strategy in Australia Tim Toohey.
There's about a 32% chance of a cut to the benchmark interest rate over the next year, a Credit Suisse index based on swaps shows.
"It's going to come down to the unemployment rate, inflation and, as I say, house prices are more of a second-order concern," Toohey said.
"Into that March, April period next year, that's when it's going to get interesting."
