Resources investment boom has officially peaked

The federal government’s top resources forecaster has, for the first time, said the mining and energy investment boom has probably peaked, reports the

Australian Financial Review.

In an assessment that underscores the need for an urgent rebound in non-mining parts of the economy, the Australian Bureau of Resources and Energy Economics said the number of projects given the green light fell in the six months ending October 31 and was the lowest in over a decade.

As financial markets brace for Thursday’s closely watched official survey of company investment plans, separate official figures showed a surprise rise in construction work during the September quarter.

KKR pulls Bis Industries IPO

Private equity firm KKR & Co has withdrawn a $1 billion-plus initial public offering for its Bis Industries mine site logistics business, citing unfavourable investor sentiment towards the resources and mining sectors in Australia, according to the Australian Financial Review.

KKR had hoped to get the Bis float away in the pre-Christmas rush, with brokers Bank of America-Merrill Lynch, Goldman Sachs and UBS distributing pre-float marketing research at the start of the month. But market conditions conspired against the plan.

In a statement issued yesterday, Bis chief executive Ian Lynass said although the company had received strong interest from potential investors locally and overseas, the decision not to proceed with the IPO was driven by broader concerns about the resources sector.

BHP's big mining secret unveiled

BHP Billiton's principal geometallurgist, Kathy Ehrig, will today lift the veil of secrecy over the Wirrda Well discovery near BHP's monster copper-gold-uranium operation in South Australia, according to The Australian.

The discovery has been talked about in industry circles for the past couple of years. BHP has only ever said that exploration in areas around Olympic Dam was part of its normal business. But it has never released results from any drilling.