ID :
61737
Thu, 05/21/2009 - 20:53
Auther :
Shortlink :
http://m.oananews.org//node/61737
The shortlink copeid
`Spending big` on resources exploration
Minerals and energy exploration spending in Australia over 2008/09 will probably
reach a record $5.64 billion, a government report says.
The estimated expenditure in 2008/09 was the highest ever in real terms and more
than twice the long-term average, the Australian Bureau of Agricultural and Resource
Economics (ABARE) report released on Thursday says.
Money spent on petroleum exploration is set to rise 36 per cent, to $3 billion, and
iron ore expenditure will increase by an estimated 14 per cent to $512 million.
Overall exploration of minerals and energy is estimated to be $5.635 billion,
slightly up on the record spend of $5.606 billion in 2007/08.
But ABARE senior commodity analyst Alan Copeland said despite the record spend it
appeared lower commodity prices were starting to bite.
"We did see a slight softening in intended exploration expenditure in the first half
of 09, compared to the second half of 08," Mr Copeland told AAP.
"There is a reasonable link between exploration expenditure and commodity prices,"
he said.
"So it wouldn't be surprising to see exploration expenditure fall in light of what
we have seen happen to commodity prices."
The collapse in base metal prices since 2008 highs has seen exploration spending on
those commodities drop by a forecast 16 per cent, to $656 million, in 2008/09.
Gold exploration is tipped to fall by about 20 per cent, to $475 million.
According to the ABARE report at the end of April 2009, 74 minerals and energy
projects worth $80 billion were in the pipeline for Australia over the coming years.
"Energy projects account for around 54 per cent, or $43.4 billion, of the estimated
capital cost of all listed major projects," the report said.
"Iron ore projects account for a further 25 per cent or $20.4 billion."
Mr Copeland said a number of very large projects that could be given the green light
soon would push up the worth of future projects by billion of dollars.
Meanwhile, a separate ABARE report said that in the six months to April 2009, 10
electricity generation projects were brought into operation in Australia.
The projects have a total capacity of 1880 megawatts, or about four per cent of the
nation's total electricity generation capacity.
Six of the generators were gas-fired, two are wind powered and two are biomass
powered, an ABARE statement said.
reach a record $5.64 billion, a government report says.
The estimated expenditure in 2008/09 was the highest ever in real terms and more
than twice the long-term average, the Australian Bureau of Agricultural and Resource
Economics (ABARE) report released on Thursday says.
Money spent on petroleum exploration is set to rise 36 per cent, to $3 billion, and
iron ore expenditure will increase by an estimated 14 per cent to $512 million.
Overall exploration of minerals and energy is estimated to be $5.635 billion,
slightly up on the record spend of $5.606 billion in 2007/08.
But ABARE senior commodity analyst Alan Copeland said despite the record spend it
appeared lower commodity prices were starting to bite.
"We did see a slight softening in intended exploration expenditure in the first half
of 09, compared to the second half of 08," Mr Copeland told AAP.
"There is a reasonable link between exploration expenditure and commodity prices,"
he said.
"So it wouldn't be surprising to see exploration expenditure fall in light of what
we have seen happen to commodity prices."
The collapse in base metal prices since 2008 highs has seen exploration spending on
those commodities drop by a forecast 16 per cent, to $656 million, in 2008/09.
Gold exploration is tipped to fall by about 20 per cent, to $475 million.
According to the ABARE report at the end of April 2009, 74 minerals and energy
projects worth $80 billion were in the pipeline for Australia over the coming years.
"Energy projects account for around 54 per cent, or $43.4 billion, of the estimated
capital cost of all listed major projects," the report said.
"Iron ore projects account for a further 25 per cent or $20.4 billion."
Mr Copeland said a number of very large projects that could be given the green light
soon would push up the worth of future projects by billion of dollars.
Meanwhile, a separate ABARE report said that in the six months to April 2009, 10
electricity generation projects were brought into operation in Australia.
The projects have a total capacity of 1880 megawatts, or about four per cent of the
nation's total electricity generation capacity.
Six of the generators were gas-fired, two are wind powered and two are biomass
powered, an ABARE statement said.
