New research has found Australia’s resources sector is set to suffer the spill over effects of a sharp investment slowdown.
Research consultants Business Monitor said a slowdown in China will impact Australia.
“With China's economy on course for a rude slowdown over the coming years, Australia's mining sector is set to suffer,” the researchers said.
“We believe the boom years in the mining industry is over.”
Business Monitor explained the nation’s mining sector is already feeling the force of “plummeting commodity prices”, with miners shelving projects and scaling back investments.
The research estimates the value of Australia’s mining sector will reach $US181 billion by 2018, growing at an annual average rate of 4.3 per cent.
The prediction is in stark contrast to the average growth rate of 23.3 per cent per annum experienced over the past decade.
“Australia has been among the biggest beneficiaries from the China-led commodities boom over the past decade, attracting huge amounts of investment into the minerals space,” Business Monitor said.
The researchers explain the value of Australia’s mining industry has increased by more than six-fold from $US24 billion in 2003 to $US147 billion in 2012.
Growth, the company says has been driven by China’s appetite for coal and iron ore.
But the researchers warn Australia will be one of the biggest losers from the minerals import shift in China.
According to the research, factors “amplifying” the downturn in Australia’s mining sector include increasing economic nationalism and declining labour productivity.