Miners surge ahead with record investments

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Deloitte Access Economics’ quarterly investment measure is today expected to throw further weight behind the Government’s push for a mining tax.

According to The West Australian, Deloitte will report a record surge in mining investment led by the companies that will be hit hardest by the tax.

The study reports that total planned or current spending in the mining sector rose 7.5 per cent in the September quarter to an all-time high of $894.1 billion.

The value of definite projects either under construction or soon to be also rose 14 per cent to $406.8 billion, a 51 per cent rise on last year.

Deloitte director David Rumbens said current economic uncertainty and problems in Europe and the US were not having a significant impact on Australia’s mining sector.

He said the future of the industry looked bright and there was a long list of current and planned investment.

“Broadly, the picture is of a huge current agenda and magnificent future pipeline for major project investment in Australia.”

Rumbens said the growing investment figures had also seen a rise in the size of new projects.

He said the number of “mega-projects” worth more than $10 billion had jumped.

Rumbens said there were currently 14 mega-projects spread across the country, with five of them in excess of $30 billion.

He said these projects in particular indicated miners had confidence in the strength of Australia’s economy.

“The rise in their number in Australia’s investment pipeline reflects the level of confidence that investors have in the longer-term prospects of the global and Australian economies,” he said.

Treasurer Wayne Swan said the lift in investment highlighted “industry scaremongering” by miners.

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