CONSOLIDATION in the resources industry along with high oil prices is set to continue into the new financial year, as financial markets await rulings by European regulators on BHP Billiton's planned takeover of rival Rio Tinto.

If all goes to schedule, BHP Billiton should know by October the outcome of a thorough review by the European Union's antitrust regulator – the European Commission – on its bold $US170 billion ($177.34 billion) bid for Rio Tinto.

BHP Billiton chief executive Marius Kloppers has hailed the deal, which will create the world's largest diversified resources group, as "compelling".

But not all parties are as excited. Steelmakers around the world are up in arms about the prospect of reduced competition and stronger pricing control by the merged entity.

BHP Billiton and Rio Tinto aside, further consolidation in the industry and bumper profits for mining companies are expected in the first six months of 2008/09, as strong commodity prices driven by seemingly endless demand from China and other developing countries continues.

"I don't believe it (the resources boom) is going to slowdown soon," BHP Billiton chief executive of ferrous and coal Marcus Randolph said during a market briefing this week.

Rio Tinto's settlement of record increases in the price of its iron ore and the tripling of metallurgical coal prices, following supply disruptions in Queensland, also paints a positive outlook for miners with exposure to those bulk commodities.

The coffers of oil companies will also continue to fare well, but the message for motorists is a dire one, with no respite from record high oil prices expected, compounding the pain being felt at the bowser.

"It is hard seeing oil going below $US100 a barrel again," ANZ senior commodity strategist Mark Pervan said.

"I think it is going to be interesting to see where prices are going to be in two years time, we might be thinking then that these current levels are okay."

Interest in energy, particularly coal seam gas, which has attracted interest from major international players including, Royal Dutch Shell, Europe's largest oil company, is expected to continue, while uranium is on the verge of a comeback after a couple of years in the wilderness.

Deutsche Bank said in a note to clients that the "world is on the verge of a uranium renaissance" and that the "financial markets continue to underestimate the potential for a rapid increase in uranium demand going forward".

The boom has been a driver of consolidation within the sector and has claimed a number of iconic Australian names, including nickel miner Jubilee Mines NL, and is about to make copper and gold miner Oxiana Ltd part of mining folklore.

Oxiana and zinc and lead producer Zinifex have agreed to merge and create a mid-tier miner that will take the name OZ Minerals.

Australia's resource companies have also piqued the interest of offshore parties including, state-owned entities from China and large international steelmakers.

The $US14 billion ($14.6 billion) share raid on Rio Tinto by China's state owned aluminium giant Chinalco earlier this year characterised the volume of money companies are willing to part with to get a slice of Australia's resources pie.

"We are going to see a lot more Chinese investors knocking on the door, a lot more money wanting to come into the sector and it is going to be interesting how the Federal Government handles that," Fat Prophets analyst Gavin Wendt said.

There is speculation that the Federal Government is contemplating a new foreign investment regime to limit state-owned enterprises to a 49.9 per cent cap and prevent them from taking control of Australian resource companies.

But while the mining boom has been fortunate for some – creating a swag of millionaires and elevating Western Australia iron ore baron Andrew Forrest to the top of the nation's rich list – the gloss has worn off for others.

The gold sector has been one of the hardest hit and has claimed the scalps of View Resources and Gleneagle Gold, with both failing in attempts to revive historic gold operations and falling into administration.

"I think it will continue to be a long hard road for the gold industry ... although the (gold) price is still strong, operating costs in the industry have been rising at a faster rate than the gold price," Mr Wendt said. – Associated Press