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These are only my thoughts on the subject.
After reading all the posts, it seems this may happen in most, if not all new mining projects.
These companies are very astute as we know, so to close a mine due to it not being viable, it would seem that:-
a) They have not done their homework, not likely, how many millions are poored into a feasibility studies
b) An oppertunity to flush out the deadwood, they have just signed a new Enterpise Agreement, rehire those they want
c) Possibly slow down the community economy, the mine company likes to be in control.
d) Reduce house and land price and then buy them, then ballot them out to the workforce (Pilbra)
e) Unions have too much control over what happens on site. (point b)Safety as being part of the reason for the closure seems far fetched (I am a safety advisor in the mining industry) BHP are one of the leaders in this area.
Understand I know nothing about the area, I would think that they will be back once things settle down, what this means for the investor will be interesting to follow so please keep this post going.
I am thinking of investing for the first time, in a town 40km from a mine that is still under construction.
Good luck it seems risk is proportinal to reward but don't be slow to repond.
We have just returned from one of the consultations and agree that their pitch is good, they wanted me to start a self managed super fund to start our investment with them.
They still have the one off payment (client for life) $5K.
The lawyer is not part of the business, he is from a seperate company and is not the only one to service ABC, our visit with him was short due to flight times and we have not spoken to him yet other than him explaining his position and giving us contracts to read.Apparently the have no connection with the developers and only had 2 properties to show us, not sure if this is due to the lack of finances or not, strata title units not even built yet. They seemed overpriced but i am not sure of Melbourne prices
We did sign up for one, cost us a holding deposit on the property.
The flight home was a little long and had more time to decifer the information that was given to us (slight overload) and we agreed that for our first investment we would like it near us.
I done some research on SMSF and it all seems very daunting for a first time invester and one with little to no idea about it, so i ceased the process.
I think that i need to talk to some professionals closer to home at least i can go see them when required.
Overall, it was enlightning to what could be done for us which has sort of enspired me to learn more and invest later. I have found some good sites through the process that has helped me so far, RP data for property prices and area history and Nearmap for location, it shows the progresive groth in some areas.
Rest asure i do not work for ABC or any way affiliated with them. I have just been through the process and wanted to share it.
oh and they recon they are going to refund my deposit in full
