Resources sector investment has peaked, but likely to remain strong for a few years yet

The Australian Bureau of Resources and Energy Economics released its latest review of Resources and Energy Projects today (see Committed investment in resources and energy major projects at peak). It shows that although resources sector capital expenditure has peaked, it should remain strong for a few years yet, and indeed could exceed the current peak if some possible (though not likely) projects get up (see the chart I’ve copied from the report below). 

resourcesinvestment

 

Queensland features prominently in BREE’s report, second only to WA:

Queensland has the second highest number of projects at the Committed Stage with 21 projects that have a total value of about $81 billion. Like Western Australia, this is primarily due to investment in mega LNG projects which account for 78 per cent, or $63 billion, of this total…

…There are nine coal projects at the Committed Stage in Queensland. These have a total value of $10 billion and are a mix of thermal and coking coal mines.  

So the resources sector will feature prominently in Queensland’s economic development for a few years yet. 

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