MARKETS

2015 Armageddon for mining-driven civil construction

ANNUAL civil construction activity, supercharged by the resources boom, is expected to peak in 2014-15 at more than $125 billion – nearly 50% above 2010-11 levels – according to industry analyst and economic forecaster BIS Shrapnel.

Staff Reporter
2015 Armageddon for mining-driven civil construction

According to the BIS civil construction report Engineering Construction in Australia 2011/12 – 2025/26, completed civil work would jump around 27% over 2011-12 alone – or a whopping $23 billion – driven by a surge in mining and LNG-related works, as well as flood reconstruction efforts in Queensland.

A further 16% growth is expected over 2012-13 and 2013-14 before work peaks in 2014-15.

A decline in the work done was forecast for 2015-16, the first since 2000-01, with further declines expected through the remainder of the decade.

In addition, the positive aggregate picture for the civil construction industry for the next few years masks weakness across non-mining segments and regions.

“Right now, it’s a monster resources battle between Queensland and Western Australia,” BIS infrastructure and mining senior manager Adrian Hart said.

“Both states are expected to see civil construction activity surge around 40 per cent in 2011-12 alone, led mainly by LNG and bulk commodities infrastructure.

“They will soon be joined by the Northern Territory and South Australia, with activity in those regions centred on the Ichthys LNG and Olympic Dam expansion projects respectively.”

By contrast, New South Wales is forecast to see near zero growth in civil work through the next three years, while Victorian civil work will decline sharply, according to the report.

This article first appeared in ILN's sister publication ConstructionIndustryNews.net.

TOPICS:

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Monthly Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Monthly Intelligence team.

editions

Mining Magazine Intelligence Exploration Report 2024 (feat. Opaxe data)

A comprehensive review of exploration trends and technologies, highlighting the best intercepts and discoveries and the latest initial resource estimates.

editions

Mining Magazine Intelligence Future Fleets Report 2024

The report paints a picture of the equipment landscape and includes detailed profiles of mines that are employing these fleets

editions

Mining Magazine Intelligence Digitalisation Report 2023

An in-depth review of operations that use digitalisation technology to drive improvements across all areas of mining production

editions

Mining Magazine Intelligence Automation Report 2023

An in-depth review of operations using autonomous solutions in every region and sector, including analysis of the factors driving investment decisions