Commitment to infrastructure investment is required if Western Australia expects to continue to deliver viable resources projects in the future, a WA mining group says.
Releasing its infrastructure report, the Chamber of Minerals and Energy of Western Australia said future resources growth will be hamstrung by public sector commitment alone and increased private sector investment needs to be attracted.
“It’s clear Western Australia’s ongoing prosperity relies upon further investment in resources sector infrastructure, particularly as production levels increase,” CME Director Nicole Roocke said.
“With public sector investment constrained by rising debt levels, it is crucial any impediments to attracting greater private sector investment are understood and addressed by both industry and governments.”
The report found a number of factors are constraining private investment levels including a shortage of long-term, integrated planning for infrastructure, project structuring complexity, and a general investor aversion towards greenfield infrastructure projects.
CME also noted that WA’s infrastructure demands will exceed the ability of any government to supply all that is required, particularly in an environment where public sector debt is on the rise.
“The State Government has a crucial role in infrastructure planning and co-ordination,” Roocke said.
“The future growth of the Western Australian resources sector is not guaranteed. With local projects facing an increasingly competitive environment, we need to ensure we have the right policy settings so the sector can continue to deliver benefits for all Western Australians.”