Plenty of life left in mining boom as income phase kicks in
AUSTRALIAN corporate leaders have questioned Kevin Rudd's claim that the mining boom is over, expressing confidence that the economy is set to benefit from the income phase of the boom as the higher production phase for iron ore and liquefied natural gas kicks in during the next few years.
And News Ltd reports they have called on any new government to ensure the focus is on productivity improvements to help ensure that the more than $260 billion capital expenditure phase in iron ore and LNG expansion is delivered on time.
"It's not over. Most of the capital still has to be spent in order to deliver these big projects," said Origin chief executive Grant King.
"It's critical we have a productivity environment that allows these projects to be delivered," said Mr King, who is overseeing the development of a coal-seam gas to LNG export facility at Gladstone in Queensland.
"In respect to the LNG industry, there's still at least half to be spent across the industry . . . and when it's spent it's turned into revenue and that's still to come, so the revenue hasn't even started."
Peter Coleman, chief executive of Woodside, Australia's largest LNG exporter, said there had been a "moderating" of investment in resources after a rush to take advantage of high prices pushed costs too high and strained the supply of labour, logistics and management.
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