Report Sees Mining Construction Doom for Queensland in 3 Years
The mining construction boom in Queensland will end as early as 2014, BIS Shrapnel forecast on Wednesday.
Adrian Hart, author of the BIS report, explained that the timeframe of liquefied natural gas and coal projects, especially the large ones worth more than $100 billion, are slated to be completed by the middle of the 2010 decade. It created a large bulge in construction activity that would be sustained over the next three years only.
Although the construction industry would not die down in the state, it would instead return to urban construction project but the rest of the construction workers would probably move to other Australian states such as Western Australia where the mining sector is still booming.
Across Australia, civil work is expected to go up by about 27 per cent or $23 billion to $108 billion for the current financial year, Mr Hart said. The sector would likely grow another 16 per cent in the next two years and then peak in 2014-15.
"Given the prospect of weaker global economic and demand growth, coupled with a strong phase of investment in supply to come through across bulk commodities and energy in the next few years, mining and energy markets are likely to move closer to balance by mid-decade," the BIS report said.
