Resources investment boom to continue
Investment in Australia's mining and resources sector is set to continue at an ever-increasing pace, regardless of the implementation of the carbon tax, according to a report published by Deloitte.
The Deloitte Access Investment Monitor report showed that the September quarter enjoyed a 7.5% increase in the total value of projects, to $894.1 billion. Over the past year the value of projects recorded has risen by a very strong 16.1%.
" The value of definite projects (those classed as under construction or committed to commence soon) is recorded at $406.8 billion, a 13.8% increase on the value recorded in the June quarter, and a massive 51.3% rise over the past year," the report found.
The Deloitte report found that LNG projects contributed to the major of the sector's growth, with $29 billion Chevron Wheatstone LNG project has been given the green light to commence construction in November 2011. Queensland's Gladstone project contributes around $20 billion to the growth of the sector.
"There are an unprecedented number of mega projects underway or in planning in Australia. There are 14 projects that are each worth more than $10 billion currently in the Investment Monitor database. Of these, five have a cost exceeding $30 billion," the report concluded.
The report found that the strength in investment in long-term mega projects highlighted an underlying confidence in the sector's durability and longevity.
"Amid the extreme short term volatility that we have seen on share markets and currency markets over the past couple of months, a continued focus on the longer term picture by investors is comforting," the report found.