Canberra, Australia — ESI-AFRICA.COM — 23 November 2010 – The value of energy and minerals projects being developed in Australia rose 21% in the past six months to a new record high, boosted mainly by various liquefied natural gas and iron ore investments.
Commenting on this new development, the Australian Bureau of Agricultural & Resource Economics/Bureau of Rural Sciences revealed in a statement on its website that the value of projects was US$130.3 billion (R912.1 million) at 31 October.
“The increase in planned capital expenditure reflects expectations of growing demand for energy and mineral commodities in the medium and long term,” bureau deputy executive director Paul Morris said in the statement.
Australia “’ the world’s largest shipper of coal and iron ore “’ recently forecast record commodity export sales this fiscal year amid rising demand. BG Group Plc, Chevron Corp., Royal Dutch Shell Plc and ConocoPhillips are among energy companies investing in LNG projects in the country to tap Asian demand for cleaner-burning fuel to curb emissions.
The rise in planned investment partly reflected a decision by BG Group to proceed with the Queensland Curtis Island LNG project, and Rio Tinto Group’s commitment to expand iron ore export capacity by 60Mt over the next three years, Morris said.
The total investment value covers 72 advanced projects, under construction or committed, according to the bureau. Energy projects account for almost 70% of the estimated capital cost and iron ore projects 13%, the report said.
Projects in the state of Western Australia accounted for about 70% of the capital expenditure, and developments in Queensland 21%, the bureau added.