Australian Mine Project Spending Falls 5% as Boom WanesDavid Stringer
The value of mineral and energy projects being developed in Australia, the world’s biggest iron ore exporter, fell 5 percent to A$229 billion ($212 billion) as investment continued its downturn.
“While the investment cycle has peaked, Australia is now moving into a period of significant increases in the production of resources and energy commodities,” the Bureau of Resources and Energy Economics’ Deputy Executive Director Wayne Calder said today in its twice-yearly report on project investment. At Oct. 31, the value of projects was A$240 billion, it said.
Miners including BHP Billiton Ltd. and Rio Tinto Group have cut spending after a $250 billion capital investment spree, ditching expansion projects in response to falling commodity prices. While the investment cycle has peaked, Australia is now moving into a period of significant increases in commodity production, the bureau said.
A total of 8 projects worth a combined A$12.8 billion moved to the committed stage in the six months to April, led by Hancock Prospecting Pty’s Roy Hill iron ore project, valued at A$10.7 billion, the Canberra-based bureau said.