According to a report by ANZ Bank and Port Jackson Partners for The Australian, the number of boom-time resource project proposals has swelled beyond economic feasibility and more discrimination in development will be required.

The report, Quality Matters: A Progress Report on Australia’s Natural Resources Export Opportunity, notes that in an increasingly restrained resource investor environment, project developers will have to satisfy more demanding proofs of a proposal’s economic soundness.

The potential cuts in this scenario are massive.

If only the least attractive third of the 950 planned resource and infrastructure projects are shelved, capital spending between now and 2020 would reportedly drop over $300 billion and more than 150,000 jobs could be lost.

Report author Angus Taylor was quoted by The Australian on the ramifications of the evolving investment environment and the recent hike in royalties on Queensland coal.

“For thermal coal projects, which are much more marginal than coking coal, those royalty changes are starting to affect the economics to the point where they are making all the difference,” he said.

The report found that prioritisation in planning and infrastructure approvals should focus on projects that serve export opportunities, notably Queensland coal.

Policy improvements suggested in the study echoed familiar agendas across the resource sector, including more competitive tax regimes, streamlined approval processes and controlled energy costs.

More overseas workers and pre-fabricated equipment were also proposed to increase project viability and soften the effects of inevitable cuts in development spending.

“Attention is needed to ensure that Australia’s highest potential projects receive focus to maximise their chances of success,”The Australian quoted from the exclusive report.

“Capital, labour and time are in short supply – there is little point in allocating these where the projects involved have few genuine prospects.”