Strategic Graphite To Raise Funds For Australian Mine
News: Strategic Graphite has announced plans to raise AUD10mn (US$9.5mn) to help fund the development of its historic Uley graphite mine in South Australia, Australian Mining reports. The company stated that it plans to raise the funds through a rights issue and a share placement scheme.
BMI View: We believe Australia will be the biggest loser from the mineral imports shift in China. The latter commands a prominent role in Australia's exports of key commodities including coal and iron ore. Already, the mining sector is feeling the crunch of plummeting commodity prices as a string of miners scale back their ambitions and slam the brakes on investment. The rising tide of economic nationalism, declining labour productivity and aggressive minimum wage legislation will compound the challenges in the mining industry, amplifying the downshift in Australia's economy.