Australia's mining investment hits record high in April

Investment in Australia's advanced minerals and energy projects hit a record 183.8 billion U.S. dollars in April 2011, 31 percent higher than in October 2010, latest data showed on Thursday.

The Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) on Thursday released the latest report on capital expenditure (capex) for minerals and energy projects for April.

The April's figure has set a new record, and is nearly four times the average annual expenditure of the past 30 years. "The significant increase in planned capital expenditure reflects the mining industry's confidence in the medium and long term outlook for Australia's mineral and energy commodities," ABARES acting deputy executive director Terry Sheales said in a statement on Thursday.

The record capex takes in 35 energy projects, 356 mineral mining projects, 20 infrastructure projects, and four minerals and energy processing projects.

The increase was fuelled by the Queensland Curtis and Gladstone coal seam gas to liquefied natural gas (LNG) projects, as well as major expansions and new developments in coal and iron ore by BHP Billiton, Rio Tinto and Fortescue Metals.

According to Resources Minister Martin Ferguson, the figure was evidence of continued confidence in Australia as an investment destination.

He pointed out that the challenge was now to ensure companies investing in Australia's future had the labour and skills needed to deliver projects.

He said that the federal government will address the skills shortage by boosting skilled migration and skills and training for Australians to meet demand.

The report showed Western Australia accounts for 63 percent of advanced capital expenditure, reflecting the significant oil, gas and iron ore developments in the state.

Queensland accounts for a further 28 percent supported mainly by the development of LNG facilities using coal seam gas as a feedstock, and coal mines and associated infrastructure.

Also, there is no sign of capex slowing ahead of the introduction of the Mineral Resources Rent Tax (MRRT) in July 2012, with the report predicted capex will increase 33 percent in 2011/12 from the previous financial year.

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