ANZ senior economist Catherine Birch said mining firms’ plans for a significant expansion in capex in 2019-20 would not be reversed with a number of multi-billion-dollar iron ore projects locked in.
Miners such as the listed Fortescue have forecast significant capital expenditure programs over the 2020 financial year. Fortescue has guided the market for $US2.4 billion ($3.54 billion) expenditure alone in the next year.
On Thursday Toowoomba-based company Wagners was announced as the lead contractor to deliver a $35 million quarry operation for Adani’s Carmichael Coal project in Queensland which was only approved in June this year.
The announcement follows Adani’s awarding of a $100 million rail laying contract and another $40 million in rail building camps.
Carmichael Project director Mr David Boshoff said “we still have plenty of other contracts yet to award, and we strongly encourage jobseekers and suppliers to register their details…”
The latest reporting season has shown mixed results for capital expenditure plans.