MINING INVESTMENT IN AUSTRALIA REACHES RECORD LEVELS

Australian mining investments

reach a new historic record

Cecilia Jamasmie | November 29, 2011 Print Article

Australia’s total investment in the mining & resources industry soared by 30% in the past six months to a record $231.8 billion, according to the Bureau of Resources and Energy Economics latest Mining Industry Major Projects – October 2011 report.

The study, issued today, includes a record 102 projects at an advanced stage of development, including 40 minerals projects, 37 energy projects, 21 infrastructure projects and four mineral processing projects.

“Although uncertainty surrounds the outlook for futures prices in commodities, exploration expenditure is expected to remain high, providing resource prices stay high,” the report says.

Lead author and bureau resources manager Alan Copeland said 93 per cent of the projects involved oil, gas, iron ore and coal and totalled $6.2 billion – just shy of the highest amount on record and double the average of the past 30 years.

Canberra Times reports that the figures come just before Treasurer Wayne Swan issues the mid-year Budget update, which will show the turmoil in Europe has helped strip a further $20 billion from revenue over the next four years. He is expected to reveal further cuts to spending.

Western Australia accounts for around 64 per cent of expenditure on advanced projects with final investment decisions announced for the Wheatstone and Prelude LNG projects in the last six months.

There are now a record 102 minerals and energy projects that have reached a final investment decision.

Sourced & published by Henry Sapiecha

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