Australia’s record mining investment to ease mid-2013
News from Treasury – Reuters:

CANBERRA | Wed May 30, 2012 10:02pm EDT

CANBERRA May 31 (Reuters) – Australia’s record mining boom investment is set to ease from mid-2013, but demand from China and other Asian nations for the country’s resources would continue to fuel investment for some considerable time, Australia’s Treasury said on Thursday.

Australia is in the middle of its biggest mining boom since the gold rush of the 1860s, with about A$ 500 billion ($ 486 billion) of investment in the pipeline, Treasury’s head of macroeconomics David Gruen said.

But Gruen said investment in resource projects would taper off after the 2012-13 financial year, which ends in July 2013.

“It can’t go on growing at that rate, and it can’t stay at those sort of levels,” Gruen told a parliamentary hearing on Thursday.

“There is no question that if you look out the next few years, our expectation is we’re not going to see continued growth at anything like this rate beyond 2013.

“In fact it seems very likely that the level of investment in the mining secto…………… continues on Treasury – Reuters

… Read the full article

Related News:

Osborne Seeks Investment Fund Backing for U.K.’s Small Companies
News from Bloomberg:

Chancellor of the Exchequer George Osborne sought 500 million pounds ($ 776 million) of investment from funds that will be matched by the U.K. Treasury to spur lending to small companies.

Osborne will seek bids from five funds to manage the latest tranche of the Business Finance Partnership. A further 100 million pounds will be loaned by Vince Cable’s Department for Business, Innovation and Skills.

The plan allows the government to pass on “the benefits of Britain’s creditworthiness to businesses and open up new options to finance them” Osborne said in a statement released by his office in London today.

The measures are part of Osborne’s 21 billion-pound credit- easing plan announced last year that’s intended to funnel loans to credit-starved small and mid-sized companies. The broader program underwrites loans to companies, allowing banks to extend credit at rates closer to those the government borrows at.


… Read the full article