The latest Australian Bureau of Agricultural and Resource Economics report has revealed that expenditure for mining and energy exploration in the 2007-08 period hit $5.5 billion – a new record and a jump of 39% over 2006-07.

On the other hand, the total capital expenditure of $67.3 billion of the 347 Australian mining and energy projects covered is down 4% from the last six-month report.

Taking the altered economic climate of the past few months into context, ABARE acting executive director Karen Schneider was cautious.

“Given the significant changes in the global economic outlook, there is still the chance that some projects may be deferred, modified or even cancelled,” she said.

“It’s too early to tell at this stage.”

Looking at advanced projects under development, ABARE reported that coal mine and coal infrastructure projects totalled $10.3 billion, representing 27% of the estimated $38.2 billion capital costs of the considered advanced energy projects in the nation.

Of the big projects, ABARE said Rio Tinto’s $1.5 billion Clermont open cut mine in Queensland was expected to replace production from Blair Athol and was due for completion in 2010, to produce 12 million tonnes per annum of thermal coal.

The independent government economic research agency said Rio’s $1.2 billion Kestrel project near Emerald in the state was expected to produce 1.7Mtpa of coking coal from 2012.

In New South Wales, near Muswellbrook, Xstrata Coal’s $1.1 billion Mangoola open cut mine, also known as Anvil Hill, is anticipated to produce 10.5Mtpa of thermal coal from 2011.

Another eight advanced coal mine developments in the two states have ABARE expecting coal production capacity to be boosted by around 15Mtpa over the next three to four years at a combined capital cost of $2.4 billion.

For advanced energy projects as of October, which include coal and coal seam methane, NSW and Queensland have seven and 21 under development respectively to the tune of $3.49 billion and $7.94 billion.

This compares to three advanced NSW mining projects at $965 million and another three in Queensland at a capex estimate of $1.17 billion.

Aside from projects already mentioned, upcoming advanced coal projects in Queensland include Macarthur Coal’s Vermont mine, Ensham Resources’ mid-2009 recovery to operations from severe flooding at its underground mine, Vale’s Carborough Downs and Anglo American’s Lake Lindsay expansion.

NSW has Xstrata Coal’s open cut Mangoola and Blakefield South longwall developments along with Whitehaven Coal’s underground Narrabri and its nearby Rocglen open cut.

To meet supply chain constraints, a series of infrastructure projects underway have the report’s co-author and ABARE senior commodity analyst Alan Copeland telling International Longwall News that resulting capacity increases should start making maximum impacts around late 2010.

In early 2010, ABARE expects the Newcastle Coal Infrastructure Group’s $1.3 billion export terminal at the Port of Newcastle will have a coal loading capacity of 30Mtpa.

Further upgrades were anticipated by the agency to increase coal handling capacity to 66Mtpa.

Port Waratah Coal Services is also upgrading its Kooragang Island Coal Terminal at the port.

The $456 million expansion and refurbishment is expected to result in 11Mtpa of increased coal loading capacity.

Queensland is looking forward to the mid-2010 completion of the $818 million Abbot Point Coal Terminal X50 expansion at Bowen which should ramp up annual coal loading capacity from 25Mt to 50Mt.

The $679 million Dalrymple Bay Coal Terminal 7X expansion is due in early 2009 and projected to lift annual coal loading capacity by 17Mt to 85Mt.

At an estimated $4.2 billion, the coal infrastructure projects account for about 41% of total committed capex in the coal industry, according to ABARE.

For the recently completed coal projects, Xstrata’s Liddell Coal washplant upgrade is expected to increase annual production capacity to 1.4Mt.

Donaldson Coal’s Abel longwall mine was completed ahead of schedule and is expected to produce 4.5Mtpa of run-of-mine semi-soft coking coal.

Queensland Rail also completed the $70 million Broadlea to Wotonga duplication.