Hi all
With the government approvals now done, new airport, new rail, new gas pipeline, plus a 50yr+ mine life is anyone looking at investing there.
Houses still seem to be priced ok, compared to other mining areasBarry
I've heard of the Olympic Dam project, but I don't know the area at all.
Are there other industries around to help support the employed population?
It's just risky if you are betting it all on the project coming to fruition (which I think will take a few years anyway?).
I am supprised, when BHP are going to spend 30 billion on an expansion of an existing mine no one seems to be doing the research or asking questions.
I understand some out there are not keen on minning areas at all, however this will be the largest open cut mine in the world, I just thought at least people would be talking about it and doing their research
Barry
the towns i think that will gain the biggest upside will be whyalla as the desal plant will be built there and port augusta with the new port etc
.for me roxby downs is too risky as new housing will be built there to accomodate the new workers which means i don't think you will see returns high enough to justify buying there. the coastal towns are more secure as theres different industries in town and you can get yields over 7%I bought a 2br unit in Roxby in Jan 2010 for $285K when the Olympic Dam was operating at reduced capacity after the mine accident. It was recently valued at $360K. I have a 12 month coroprate lease (about to be re-newed). Current rented at $440 per week – around 8%.
Agree that mining areas can be risky, but Roxby appears to have good prospects for the future. A camp will be built for a lot of the workers involved in the expansion, but Roxby Downs itself is expected to increase to around 10,000 people (it is now around 4,500). The rental market at the moment at the moment is very tight with almost no vacancies.
A lot of Roxby's long term future will depend on BHP's board approving the expansion, but keep in mind there is also discussion at the moment about the potential for mining in the area north of Woomera (about 80kms from Roxby), obviously can't say what impact this might have on the towns in the region (but I'd think it would be positive).
Hamish,
Is there much more available land for all the people to be housed on? Roxby Downs is a town i have been monitoring for the last two years with a view to purchasing once BHP give it the fall go ahead
From your comments it sounds like you have a handle on the housing plans for future population. And i would greatly appreciate a bit more detail on this?
Anthony
You can watch a video on the bhp/olympic dam site, it shows how the town will be expanded, mine etc. So basically they are looking a doubling the town size
Bhp have already begun to spend, without the official board approval next march, the main thing they want is it to pass parliament in the next mth and then they will begin to place orders for trucks etcBarry
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