Australian major projects in minerals and energy see massive growth

mep_oct2010_map.jpegABARE’ latest report shows that at the end of October 2010, there were 72 projects at an advanced stage of development in Australia, with a record capital expenditure of A$132.9 billion. This represents a 21% increase from April 2010. The record value of advanced minerals and energy projects reflects, in part, Rio Tinto’s commitment to expand its iron ore export capacity by 60 Mt over the next three years.

Subsequent to the Rio announcement, and not included in this report are the massive BHP Billiton and Fortescue Metals Group iron ore expansions, both of which are detailed in the latest issue of International Mining Project News.

In 2009-10, exploration expenditure in Australia’s minerals and energy sector was A$5.7 billion, a decrease of 5% on expenditure in 2008-09. Nevertheless, investment in mineral exploration remained strong, with Australia recording its third highest mineral exploration expenditure in 2009-10.

New capital expenditure in the mining industry was A$34.8 billion in 2009-10, 8% lower than in 2008-09. Based on industry intentions from the June quarter 2010, Australian Bureau of Statistics (ABS) survey data indicate capital expenditure in the mining sector in 2010-11 may be around A$54.8 billion.

In the six months to October 2010, 25 projects with a combined capital cost of A$8.2 billion were completed in Australia. In addition, 72 projects with a combined capital cost of A$132.9 billion are currently either committed or under construction.

The full report is available at http://adl.brs.gov.au/data/warehouse/pe_abarebrs99001758/MEP_Oct2010_report.pdf