Investments at peak finds BREE
Investment in major resources and energy projects has peaked at $268 billion, according to the latest report by the Bureau of Resources and Energy Economics (BREE).
The Resources and Major Projects – April 2013 report, released earlier this week, found that the number of projects at the Committed Stage has decreased to 73 following a number of projects being completed. Of the 73 projects still under construction, 40 are minerals projects, 18 are gas and petroleum projects, and 15 are infrastructure projects.
“High value projects continue to be the main driver of the record high levels of committed investment in the resources and energy sectors. Mega projects valued at over $5 billion account for around 80 per cent of the $268 billion in committed investment,” said Professor Quentin Grafton, Executive Director and Chief Economist at BREE.
“The decline in the number of committed projects reflects the emerging trend for high value projects at the Feasibility Stage to be delayed or cancelled, while the value of committed investment has remained close to record high levels due to cost increases to several key projects.”
The report estimates that around $150 billion worth of high value projects have been either delayed or cancelled since April last year, while cost increases to committed projects currently account for 11 per cent of the stock of committed investment.
The full report can be found here