19/11/2008 - 10:34

WA leads on mining, energy projects

19/11/2008 - 10:34

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Latest figures from the Australian Bureau of Agricultural and Resource Economics show that capital spending on mining and energy projects has fallen from its peak levels, though WA still accounts for the majority share.

WA leads on mining, energy projects

Latest figures from the Australian Bureau of Agricultural and Resource Economics show that capital spending on mining and energy projects has fallen from its peak levels, though WA still accounts for the majority share.

Western Australia accounts for almost two-thirds of the capital expenditure on advanced projects, including six oil and gas projects (valued at $22.3 billion) and 11 iron ore projects ($12.3 billion).

ABARE's acting executive director said advanced minerals and energy projects to the value of $67.3 billion indicate a positive outlook for the mining industry and an expectation of continuing strong demand for minerals and energy commodities in the medium term.

The $67.3 billion reflects 85 advanced projects, defined as being under construction or committed. Since April 2008, 31 new projects have been added to the list and 22 projects have been completed.

 

 

 

Full announcement below:

 

 

Number of minerals and energy projects down, but investment still strong

Advanced minerals and energy projects to the value of $67.3 billion indicate a positive outlook for the mining industry and an expectation of continuing strong demand for minerals and energy commodities in the medium term, according to ABARE's Acting Executive Director, Karen Schneider.

While total capital expenditure on advanced projects is 4 per cent down from April 2008, expenditure is still relatively high at 16 per cent above October 2007 levels.

"However, given the significant changes in the global economic outlook, there is still the chance that some projects may be deferred, modified or even cancelled. It's too early to tell at this stage," Ms Schneider said.

The listing of 347 major projects is detailed in the report Minerals and energy: major development projects - October 2008 listing, released today by ABARE, and includes 262 projects that are still undergoing feasibility studies.

The $67.3 billion reflects 85 advanced projects, defined as being under construction or committed. Since April 2008, 31 new projects have been added to the list and 22 projects have been completed.

Energy projects account for around 57 per cent, or $38.2 billion, of the estimated capital cost of all listed major projects.

Investment interest is also strong in iron ore (18 per cent), alumina (7 per cent) and gold (6 per cent).

Western Australia accounts for almost two-thirds of the capital expenditure on advanced projects, including six oil and gas projects (valued at $22.3 billion) and 11 iron ore projects ($12.3 billion).

Queensland accounts for a further 18 per cent ($12 billion) of capital expenditure on advanced projects, with more than half of this in coal mining and related infrastructure projects.

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