Beating already rosy expectations new Australian Bureau of Statistics figures show mining companies intend to invest $82.1 billion this financial year on new and expansion projects, representing 55% of total capital expenditure in the country’s economy. The spending spree by the resources sector – mostly in Western Australia and Queensland – represents a whopping 70% increase over last year.
Mining firms spent 14.4% more last quarter, led by a 22% jump in plant and machinery purchases, and projections show further increases in the future. The positive capex news, accompanied by robust retail spending numbers saw the Australian dollar rise above 107 US cents.
Australian Mining reports the figures were dominated by QLD and WA, and excluding those heavyweights, total investment in Australia fell 5.6%.
The Australian quotes investment bank UBS chief economist Scott Haslem: “There’s some tentative signs that the ‘rivers of gold’ from the mining sector may well be starting to drift across the broader economy.”
The Sydney Morning Herald reports Australia’s chief financial officers intend to splurge $148.8 billion on new capex this financial year – 24% more than the record investment they made last year, 6% more than they were intending three months’ ago.
