Committed investment to increase the capacity of Australia’s mining industry at the end of April 2012 was a record $260.8 billion, an increase of 12 per cent from October 2011 according to the Mining Industry Major Projects – April 2012, released yesterday by the Bureau of Resources and Energy Economics (BREE).
“ The continued growth in committed capital expenditure will result in significant increases in Australia’s supply capacity of LNG, iron ore and coal ” said Professor Quentin Grafton, BREE Executive Director and Chief Economist.
The $260.8 billion consists of a 98 projects at an advanced stage of development (committed or under construction) including 39 minerals projects, 38 energy projects, 19 infrastructure projects and two mineral processing projects.
Oil and gas, iron ore and coal and associated infrastructure accounted for around 95 per cent of the total committed capital expenditure.
Of the $260.8 billion of committed capital expenditure, over 60 per cent is accounted for by seven LNG projects. When the seven projects are complete and operating at full capacity, in the second half of this decade, Australia will be one of the world’s leading exporters of LNG.
“ The majority of the investment to expand the world’s LNG supply capacity is taking place in Australia because of our relatively large gas reserves and proximity to the Asian markets, ” said Professor Grafton.
In the six months to April 2012 there were 25 projects completed at a record value of $23.6 billion, almost double the previous record value when $12.5 billion worth of projects was completed in the six months to April 2008.
The record value of completed projects was underpinned by the completion of the Pluto LNG project at a capital cost of almost $15 billion, as well as the $3.4 billion expansion to the Worsley alumina refinery.
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LNG World News Staff, May 25, 2012; Image: Woodside