Projects engineering firm, Worley Parsons, has today warned that the pipeline of resource projects in Australia is diminishing fast, leaving a large void of work for those involved in mining construction. From The Australian:
In an interview at Bank of America Merrill Lynch’s Australian Investment Conference in New York, WorleyParsons chief financial officer Simon Holt indicated Australia was nearing an end of a massive wave of energy investment as giant developments move closer toward completion.
“Australia has come off some pretty big projects and (while) there’s still some huge construction going on there, for us our earnings are greatest through the detailed design process and there’s no new projects,” he said.
Mr Holt indicated that most of the action in Australia resources sector was now in expansion of already existing projects and, speaking about the oil and gas sector specifically, said WorleyParsons saw “no new large projects” in the “foreseeable future”…
And here’s Access Economics’ forecast decline in mining capex:
Note the big declines forecast for each of the next three years, with the pipeline all but exhausted by 2017 – just in time for the car industry to shutter!
