According to published reports, Australia announced an interest rate cut this week in reaction to leading miners postponing investment plans and shutter projects.
Australia’s proximity to China made it a main supplier of iron ore and coal over the past decade, but a change in the markets has hit the sector.
Furthermore, costs have exploded in Australian mines and its wages are now some of the top in the industry.
Australia’s own BHP Billiton PLC (NYSE: BHP, Stock Forum) reported a fall in annual profits this August and announced it was delaying a $20-billion expansion of a open-pit copper and uranium project in southern Australia.
On Monday, BHP Billiton was trading at $68.11 a share. The company has a market cap of $182.12 billion, based on 2.7 billion shares outstanding. The 52-week high and low was $84.37 and $59.87 respectively.