London, 18 November 2010

Planned capital expenditure in Australia’s minerals and energy sector, as at 31 October 2010, is a record $132.9 billion as indicated in the ABARE–BRS report of major development projects. This is an increase of 21% since April 2010.

ABARE-BRS’s Deputy Executive Director, Mr Paul Morris released the Minerals and energy: major development projects – October 2010 listing report and said “the increase in planned capital expenditure reflects expectations of growing demand for mineral and energy commodities in the medium and long term”.

The $132.9 billion investment covers 72 advanced projects, under construction or committed, of which 26 are energy projects, 25 are mineral projects, 15 are related infrastructure projects and 6 are mineral processing projects.

“The record value of advanced minerals and energy projects reflects, in part, the decision to proceed with the development of BG Groups’ Queensland Curtis Island LNG facility and Rio Tinto’s commitment to expand its iron ore export capacity by 60 million tonnes over the next three years”, Mr Morris said.

Energy projects account for nearly 70 per cent, or $92.9 billion, of the estimated capital cost of all listed advanced major projects. Iron ore projects account for a further 13 per cent or $16.9 billion.

Minerals and energy related infrastructure projects account for $11 billion or 8 per cent of committed capital expenditure. These projects are typically coal or iron ore related rail and port infrastructure projects or gas pipeline projects.

Western Australia accounts for around 70 per cent of the initial capital expenditure on advanced projects, including seven oil and gas projects (valued at $65.4 billion) and nine iron ore projects ($16.9 billion).

Queensland accounts for a further 21 per cent, or $27.8 billion of capital expenditure on advanced projects, with over half of this relating to BG Group’s recently committed US$15 billion LNG facility on Curtis Island.

The listing of 376 major development projects includes 304 projects at a less advanced stage, that is projects undergoing feasibility studies or approval processes.

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