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14 November 2007 |
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| Investment in Australia's resource sector continues at rapid rate |
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| ABARE's latest report of major minerals and energy projects has revealed 91 "advanced" (under construction or committed to) projects, at a record value of $57.9 billion.
"This is a record value of advanced projects and represents a 33 per cent increase since the April 2007 report and a 66 per cent increase year on year," Phillip Glyde, ABARE Executive Director, said on releasing the report Minerals and energy: major development projects – October 2007 listing. In total there are a record 305 major projects in the October 2007 listing – 214 projects are at less advanced stages and still undergoing feasibility studies; 29 have been completed and 51 have been added to the list since April 2007. "This level of investment will increase the production capacity of the mining sector, enabling it to contribute to meeting the world"s growing demand for minerals and energy," Mr Glyde stated. Energy projects account for around 55 per cent (or $31.6 billion) of the estimated capital cost of $57.9 billion for all of the advanced projects. Investment interest is also strong in iron ore, nickel and gold, which account for a further 20 per cent, 5 per cent and 5 per cent, respectively, of the estimated total capital cost. Western Australia accounts for over 73 per cent of capital expenditure on advanced projects, including 12 petroleum projects (valued at $22.5 billion) and nine iron ore projects ($11.7 billion). Capital expenditure on advanced projects in Queensland accounts for a further 18 per cent. Coal mining and infrastructure projects account for 57 per cent ($5.9 billion) of this capital expenditure in Queensland. Between April 2007 and October 2007, three projects – the Pluto LNG project and Pyrenees oil project in Western Australia and the Yarwun Alumina Refinery expansion (Queensland) – were committed to, at a value of over $16 billion. This accounts for a significant proportion of the increased value of committed projects. Mr Glyde noted that scarcity of skilled labour, and increased materials and construction costs continue to have an impact on the timing and overall costs for some projects. In the short to medium term, high levels of investment activity are expected to continue in the resource sector. "While not all of the less advanced projects will necessarily proceed to development, the record number of 214 provides another indicator of the strong growth prospects of the sector". |
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| For media interviews and comment, please contact senior commodity analyst Alan Copeland on 02 6272 2270 or email acopeland@abare.gov.au. For free downloads of the report Minerals and energy: major development projects – October 2007 listing, visit the ABARE website www.abare.gov.au or phone Publications on 02 6272 2010. For general media enquiries, contact Maree Finnegan, Media Coordinator on 02 6272 2260, mobile 0417 689 567 or email mfinnegan@abare.gov.au. |
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