Business

Record-breaking investment in our resources industry

THE hiccuping of Queensland's traditional engine room in Central Queensland is being drowned out by the economic roars from new frontiers in coal and gas.

Mines in the Bowen Basin, west of Mackay, have long been the epicentre of the state's coalmining booms but new figures point to the emerging Galilee Basin west of Rockhampton and Curtis Island near Gladstone powering up to take its place.

New figures from the Federal Bureau of Resources and Energy Economics released on Wednesday showed record-breaking investment in Australia's resources industry.

BREE research found 87 committed developments worth $268 billion across the country with $78.4 billion or almost 30% coming from 22 projects planned for Queensland.

By comparison, New South Wales had 16 projects worth a total of $9.5 billion or 3.5% of the total.

BHP Billiton Mitsubishi Alliance mothballed its Norwich Park and Gregory coal mines this year as coal prices waned.

It also postponed its Red Hill mine, a plan worth $2.2 billion.

Rio Tinto wound down its Blair Athol operation, which closed last week

Most mining giants also launched company wide cost-cutting measures, often cutting the number of contractors.

There were still 10 coal projects worth a total of $10.2 billion in the Bowen Basin, capable of creating at least 2800 building jobs and another 1610 to operate the mine.

On paper, the figures appear paltry when compared with $60.8 billion being invested in liquefied natural gas projects near Gladstone.

Those projects will employ up to 17,000 through construction and up to 3000 once operating.

To the west, $23.15 billion is to be spent in the Galilee Basin, which - if all were successful - would deliver 130 million more tonnes of thermal coal per year for export.

BREE senior economist John Barber said the Bowen Basin lacked the enormous plans plotted for other parts of the state.

"There aren't that many mega projects in the Bowen Basin," Mr Barber said.

"There are some large ones, worth more than $1 billion, but not of the scale of the thermal coal and LNG elsewhere in the state."

Mr Barber said although there appeared to be a slowing in some areas, other parts of the state were making up for it.

"It's never a good thing for a community to have a project delayed or cancelled," he said.

"But when you look at a (state) level instead of regional impacts, it has seen growth due to those LNG projects."

Federal Resources Minister Martin Ferguson warned that big numbers did not guarantee a booming industry.

He said while mineral prices remained low, challenges would persist.

"In the face of lower commodity prices, the delivery of this pipeline of projects is contingent on keeping production costs down, providing access to skilled labour and increasing our productivity and efficiency."

Topics:  bowen basin, coal, gas, resources industry




Stay Connected

Update your news preferences and get the latest news delivered to your inbox.

'My husband lasted 6 weeks as a stay at home dad'

APN Hey Mummy Feature for online - stock images. Katie Dykes being interviewed for the webisodes. Photo Marc Stapelberg / The Northern Star

FROM the outside, being a stay at home mum looks like a breeze.

THE EXPERT: Stop judging working mothers

SUPER MUMS: Being a working mums comes down to perfecting time management.

"WORKING for money is all right; so is working because you want to.”

OPINION: How to prepare your child for day care

Your kids will love childcare, but it may take some adjusting.

GETTING your child ready for day care is vital.

Health and nutrition with kids - how do you balance it?

HOW important is health and nutrition in your household?

Smack or no smack - where do you stand?

THE debate is reignited - is smacking acceptable?

Technology and kids: Do you ever cut their wi-fi?

Check out our new video series featuring mums having a chat

Rate rise gives residents a real bang for their buck

MY BUDGET ROCKS: Paul Pisasale explains why his 2016/17 budget makes a slight rate rise well worth it.

Pisasale hails new budget as "an agent for change"

Grantham flood fraudster loses appeal

AFTERMATH: Emergency services in Grantham after the deadly 2011 floods. A new inquiry will investigate if man-made features contributed to flooding.

As Grantham was on its knees Blackmore ripped off the system

Self-monitoring dust 'invites corruption'

Self-monitoring dust ‘invites corruption’

Latest deals and offers

Driveway delivery

Toby Hill was born on June 22 on his grandparents driveway in Riverhills. Pictured is big brother Bradley Hill, dad Matt Hill, mum Hannah Hill, grandmother Donna Eagle and grandfather Nick Eagle.

Toby Hill was born on June 22 on his grandparents driveway in Riverhills.

Rosewood Amber Alert

No Caption

Audio of Detective Senior Sergeant Greg Williams of the Ipswich Child Protection...

Ernie Els dunks for eagle

Smooth swing, great shot.

Ernie Els lives up to his reputation for one of the best swings in golf.

Arts and culture get a boost in council budget

HAPPY CAMPER: Council’s culture boss Cr Charlie Pisasale will be delighted $400,000 has been allocated for a business case investigation for IPAC.

IPAC at the forefront of councillor's agenda

Three bedroom, 1100sqm block: Is this Qld's cheapest home?

BARGAIN BUY: Is this North Bundaberg property the cheapest home in Queensland?

Becoming a real estate mogul is all about risk and reward