$100B mining projects threatened

A plunge in the prices of Australia’s export commodities as well as high labour and construction costs will stall $100 billion of mining and energy projects, as companies scramble to reassess their long-term investment pipelines, according to the Australian Financial Review.

Analysis by the AFRof the federal government’s Bureau of Resources and Energy Economics’ major projects pipeline shows more than a dozen big developments in the less advanced category will be further delayed, endangering the next phase of the resources boom.

The threat to projects was underlined yesterday by BHP Billiton’s decision not to ask for an extension of a key royalty agreement with the South Australian government, effectively sidelining its $US20 billion Olympic Dam expansion for the foreseeable future.

China faces lowest growth in 13 years

China’s economic growth this year could come in below 8%, its lowest rate for 13 years, as economists continue to pare back their forecasts, according to The Australian.

As the world's second-largest economy continues to falter, economic gloom is spreading across the region and any bounce-back is not expected until the new year, with politics topping Beijing's agenda as it prepares to change leaders.

Project expansions fill contractors' order books

Engineering contractors are continuing to fill their order books on the strength of the committed expansion plans of the Pilbara iron ore producers despite the free fall in prices for the steelmaking raw material since April, according to The Australian.

Forge subsidiary CTEC has picked up a $A280 million engineering, procurement and construction contract for a gas-fired power station for Rio Tinto at Cape Lambert, and Monadelphous has been awarded a $75m construction contract for BHP Billiton at its Jimblebar mine to the east of Newman.

The pick-up by Forge validates its acquisition of the privately-held CTEC in January for an undisclosed sum.