Mine projects update sees end of 'millennium mining boom'

AUSTRALIA'S resources industry is at the start of a decline in investment that may not bottom out for at least five years.

The Federal Government's top industry experts - the Bureau of Resources and Energy Economics - released its latest major projects update on Wednesday.

Investment is predicted to fall from $268 billion for confirmed mining and energy projects in 2013 to about $70 billion in 2017.

It marks the end of what was deemed the "millennium mining boom", when $394 billion was spent developing 390 projects in the decade from 2003 to 2012.

Of those, $268 billion is currently being spent on 73 projects still under construction.

The forecast decline will be a shock, but investment is expected to match amounts spent in 2007, a year of booming and record-breaking funding as Australia sat on the cusp of the global financial crisis

Even as we reach the tipping point, $88.7 billion of near-certain investment is flowing for Queensland and New South Wales.

Of the $6.7 billion for NSW, $500 million will be spent on the Boggabri open-cut coal mine and a further billion invested for the Hunter Valley Corridor rail project.

In Queensland, $81 billion is being pumped into the emerging coal seam gas to liquefied natural gas industry for three massive Gladstone developments worth a total of $63 billion.

There is also $10 billion for Queensland's major coal projects including BHP Billiton Mitsubishi Alliance's Caval Ridge and Daunia mines near Moranbah - worth $3.4 billion - and Rio Tinto's $1.9 billion Kestrel expansion for Central Queensland.

BREE's report fleshed out some of the gloomier figures for the resources sector.

"In the past 12 months, around $150 billion of projects have either been delayed, cancelled or have had re-assessed development plans," the report said.

Australia still holds 287 projects worth up to $403 billion in potential mining and energy investment.

Mr Bryce said this showed a "large opportunity" for Australia, but it would depend on what companies and governments were keen to spend their money on.

 

GOOD NEWS

Despite predicting gloom for the mining and energy sector, Queensland and NSW are set to enjoy investing worth $88.7 billion.

It includes:

Boggabri open-cut coal mine(Northern NSW)

  • Value: $500m
  • Construction: Unknown
  • Operating: 500
  • Due: 2014

Broadmeadow mine extension (Central Qld)

  • Value: $874m
  • Construction jobs: 650
  • Operating: N/A
  • Due: 2013

Caval Ridge mine (Central Qld)

  • Value: $1.87b
  • Construction jobs: 2000
  • Operating: 500
  • Due: 2014

Daunia (Central Qld)

  • Value: $1.55b
  • Construction jobs: 1000
  • Operating: 450
  • Due: 2013

Aust Pacific LNG (Gladstone, Qld)

  • Value: $24.7b
  • Construction jobs: 6000
  • Operating:1000
  • Due:2015

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