One of the key themes taking centre stage in Australia is the recent surge in committed and proposed minerals and energy project spending. Indeed what we are witnessing is unprecedented and will have significant flow on effects for many companies across Australia.

At the most recent RBA meeting, Reserve Bank Governor, Glenn Stevens released a statement that gave a strong insight into exactly what is happening with respect to resources capital expenditure:

“Information about the Australian economy suggests output growth has been close to trend, with demand growth stronger than that. The terms of trade have now peaked and will decline somewhat in the near term, but they remain very high. In response, investment in the resources sector is picking up very strongly, with much more to come.”

Stevens’ last line gives a strong indication of his belief that resources capital expenditure is still gathering steam. Although it won’t last forever, this represents a significant opportunity for many ASX-listed mining services companies.

The Bureau of Resources and Energy Economics (BREE) routinely releases projection updates for the resource industry. The most recent information related to mining capital expenditure, titled “Mining Industry Major Projects – October 2011”.

The key points to glean from the BREE report are:…

>> click to read the full Resources Capex and Mining Services report