Australian Resource Sector Shines Again with Record Highs
Australia (News4us.com) May 26, 2011
Planned capital investment in Australia’s energy and mineral sectors continues to set new records according to the latest update of the ABARES major development projects listing released today.
The April 2011 listing shows a 31 per cent increase on the record set last October with 94 advanced projects totalling $173.5 billion. The report notes that new capital expenditure in 2010-11 is the highest on record and nearly four times the average annual expenditure of the past 30 years.
This increase is due primarily to the addition of the Queensland Curtis (QCLNG) and Gladstone (GLNG) coal seam gas to LNG projects on the east coast and major expansions and new developments in coal and iron ore by BHP Billiton, Rio Tinto and Fortescue Metals.
The Minister for Resources and Energy, Martin Ferguson AM MP, said this was evidence of continued confidence in Australia as an investment destination the continuing strength of the resource and energy sectors.
“The unprecedented growth of capital investment in minerals and energy is creating jobs and fuelling a prosperous national economy,” Minister Ferguson said.
“Attracting this investment is crucial, but so too is doing what we can to see projects succeed in a competitive global market.
“That’s why the Government’s support in the 2011-12 Budget for skills, training, migration and Australian content is both timely and necessary.
“We want to ensure that the companies investing so heavily in our nation’s future have access to the labour and skills they need to deliver projects, and extend the benefits of these investments to local suppliers and manufacturers.
“Effectively managing this growth is essential with today’s report also indicating that we may see a continued strong increase in capital expenditure in 2011-12 by potentially a further 33 per cent.”
Expenditure is also continuing on mineral exploration and is expected to rise across all major mineral commodities in 2010-11.
ABARES is predicting a particularly strong rise in exploration expenditure on commodities such as coal, which is estimated to increase by 12 per cent in response to expectations of increased world demand and uranium which is estimated to increase by 37 per cent.
“With a total of 399 projects on this listing and decisions on some major new investments edging closer I anticipate the record book will continue to be rewritten for some time to come,” Minister Ferguson said.
The complete report is available at www.abares.gov.au/publications
Short URL: http://www.news4us.com/?p=10812