# Effects of the AUD fall and mining services utilisation



## sydboy007 (17 August 2013)

I'm starting to wonder if the economics of accessing new resource deposits in Australia may be starting to move back to being attractive to foreigners.

The roughly 15% fall in the AUD has to help, and from what I've read new contracts for mining services are around 15% cheaper now too.

If the forecasts are right and the AUD is closer to 80 than 90 in 12 months then that's another fall of 10% or more in USD terms.  I'd start to think that would put us back down into the bottom half of the cost curve.

Whether there's the demand for the resources is another question, but I'm starting to wonder if maybe we might not have such a giant drop in mining CAPEX after mid 2014.  I was assuming we'd see maybe 5-6% of GDP "lost" as the level of mining investment moved closer to the longer term 2% of GDP.


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