Will the resources sector continue to 'boom'?

Although not directly associated with the unparalleled increase in value of the mining industry seen in many parts of Australia, Cairns' property markets have experienced an indirect benefit through a growing number of workers seeking housing in the region as a fly-in fly-out basis for their employment in those mining areas.

In this way, Cairns is set to benefit as the closest Australian port to Papua New Guinea and it's significant mining prospects, including current operations in central and northern Queensland and even in areas of the Northern Territory.

Tim Lawless, head of the research and analytics team at RP Data, recently reported on information concerning the mining industry in Australia and it's future for growth relevant to national property markets asking the specific question of "Will the resources sector continue to boom?" Article text:

Well, the experts certainly think so.  If you have any interest in the resources sector, arguably the best source for information is the Bureau of Resources and Energy Economics (BREE).  Their most recent forecast for the 2011/12 financial year is a 15% increase in the value of Australian energy minerals and metals over the previous year, bringing the total value to over $200 billion which is a record for export earnings.

The number and value of advanced resources projects is at an all time high with most of these projects located in Queensland (31) and Western Australia (40). Additionally there are a further 404 ‘less advanced’ projects that are either undergoing feasibility study, awaiting approval or awaiting final investment decisions.  These include 14 proposed LNG developments which have the potential to add 75 million tones to Australia’s annual LNG production capacity.  BREE also point out that there are 15 less advanced iron ore projects which have an estimated capital expenditure of $1 billion or more... Read Full Blog Article Here

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