Australian investment falls 10 per cent

Press, 8 September 1982, Page 30

Australian investment falls 10 per cent

PA Canberra Investment in mining and manufacturing projects in Australia dropped by almost 10 per cent, or sAust3s3o million in the 12 months to June this year, according to a survey released in Canberra. The June, 1982, survey of major manufacturing and mining investment projects showed that projects worth $31,990 million were at the "committed” or "final feasibility stages” at the end of the financial year. That figure was $35,520 million at the end of June last year, and the 9.9 per cent drop does not take into account the 10.3 per cent inflation rate nor the postponement of Alcoa's $9OO million Portland aluminium

project. The Government will have to wait until after the next six monthly survey in December to see what effect the continiing rapid downturn in the economy will have on investment. The Acting Minister for Industry and Commerce. Mr Wai Fife,- noted that since the December figures which showed investment of $32,800 million, a number of significant projects had been abandoned. These included the $650 million Lochinvar aluminium smelter in New South Wales, plans for coal mining projects at Singleton (New South Wales) and Kingston (South Australia), and a silicon metal plant at Geelong in Victoria.

Between December and June projects worth $l7OO •' million had been abandoned: : new projects were valued at , $2300 million. The survey also demon- ■ strated that the manufaclur- ‘ ing sector' has been hit ( harder than the mining ' sector in the past year. ( Investment in mining dropped from $24,830 million in June. 1981. lb $24,300 million this year: however, rpanufacturing projects went from $10,690 million in June 'Bl to $7690 million this year. New South Wales suffered . worst in the manufacturing sector, with the value of projects dropping by more than 50 per cent, from $3620 million in June,’Bl to $1760 million by June'B2.