Asia to drive mining boom in Australia by 2012-13: think tank
06 Nov 2009
Strong growth within the Asian region will be a key source of demand for Australian resources assets and the country's mining sector will be booming again within three years, according to an Australian think tank.
In a new report Mining in Australia, 2009 to 2024 released yesterday by leading industry analyst and economic forecaster BIS Shrapnel, forecasts annual gross mining investment in Australia to surpass $50 billion by 2011/12 (in constant 2006/07 prices), rising to over $60 billion by 2013-14.
BIS Shrapnel says the industry will be boosted by the development of multi-billion dollar projects in the oil and gas, iron ore, coal and copper sectors.
Meanwhile, growth in Australian mining production is expected to pick up strongly across most commodities in 2009/10, and accelerate in subsequent years as global demand improves and several years of investment in new capacity begins to bear fruit.
BIS Shrapnel is forecasting the real value of mining production will rise 30 per cent over the five years to 2013/14, compared to an increase of just two per cent in 2008-09.
''The global recession has dented minerals demand momentarily, but the long term outlook for key commodities is still strong,'' says Adrian Hart, senior manager of BIS Shrapnel's Infrastructure and Mining Unit.
''While we are forecasting a decline in mining investment to play out over the next 12 to 18 months, the extent of the decline is now expected to be relatively mild considering the four-fold increase in mining investment since 2002. Over the next five years, strong growth within the Asian region will be a key source of demand for our resources assets and commodity prices will remain well above long term levels,'' said Hart.
