AS at October 2009, the value of advanced minerals and energy projects was a record $112.5 billion, an increase of 40 per cent from April 2009.
"The increase in planned capital expenditure reflects expectations of growing demand for minerals and energy commodities in the medium term," ABARE’s Deputy Executive Director, Dr Terry Sheales said, on releasing ABARE’s Minerals and energy: major development projects — October 2009 listing.
The $112.5 billion is spread across 74 advanced projects, defined as being under construction or committed, of which 38 are energy projects, 31 are minerals projects and five are mineral processing projects.
"The record value of advanced minerals and energy projects reflects, in part, the decision to proceed with development of the $43 billion Gorgon LNG project. It is the single largest project undertaken in Australia's resource sector," Dr Sheales said.
Energy projects account for around 72 per cent, or $81.1 billion, of the estimated capital cost of all listed advanced major projects. Iron ore projects account for a further 15 per cent or $16.8 billion.
Western Australia accounts for around 83 per cent of the capital expenditure on advanced projects, with eight oil and gas projects (valued at $67.2 billion) and eight iron ore projects ($16.8 billion).
Queensland accounts for a further 8 per cent ($9.3 billion) of capital expenditure on advanced projects, with more than half of this in coal mining and related infrastructure projects.
The listing of 341 major development projects includes 267 projects at a less advanced stage, that is, projects undergoing feasibility studies or approval processes.
In the six months to October 2009, 44 new projects have been added to ABARE’s list of development projects. This compares with 11 projects added in the six months to April 2009 and 31 projects being added in the six months prior to October 2008.
"The large number of new projects added to the list since April 2009 is another indication of the positive outlook for world minerals and energy commodity demand over the medium to longer term," Dr Sheales said.