MINE BOOM FUELS SURGE OF GROWTH IN THE ECONOMY

The mining surge propelling the Australian economy has eclipsed the boom of the early 1980s, a new report has found, with mining companies set to invest even more in exploration and new projects.

The Australian Bureau of Agricultural and Resource Economics found there were now a record 91 advanced projects worth $43.4 billion under way across the country, of which more than a third worth $28 billion were in WA.

But even more important, exploration is at a 25-year high and looks to grow further, while another 188 projects are at the feasibility or preliminary analysis stage.

In 2005-06, the mining industry spent $18.6 billion on capital development. This financial year spending should lift to $23 billion, and next year ABARE believes it will top the $30 billion mark.

The last time there was so much activity in the mining sector was in 1982-83 at the tail end of the late 1970s-early 1980s boom. Activity dropped sharply from that 1982-83 level, and has taken the past 25 years to get back to where it started.

ABARE executive director Phillip Glyde said it all appeared the mining boom was going to continue for a long time to come.

“These numbers show that investment remains strong, enhancing the prospects for sustained growth in the Australian mineral resources sector,” he said.

Of the 36 projects under way in WA, 26 worth $19.4 billion are for minerals — dominated by iron ore mining. Another 10 energy projects worth $8.5 billion are also being developed.

There are another 66 plans at a less advanced stage in WA, of which 20 are in iron ore worth almost $16 billion, including Australasian Resources $2.8 billion Balmoral South project.