Australia's resources industry is undergoing rapid
expansion. Project developers should focus early on acquiring
suitable engineering firms, mining contractors and construction
firms because capacity in these sectors over the next 12 to 24
months is likely to be extremely tight.
The Australian resources market is also currently characterised
by a high degree of takeover activity. Consolidation is likely to
be seen in many sectors of the mining industry, including iron ore,
gold and base metals.
State governments approach resource projects differently. Some
states, eg Western Australia and Queensland, commonly use
instruments known as State Agreements when developing significant
mining, oil and gas projects. These are in addition to regulatory
issues and are essentially contracts between the state and private
developers where each commits to certain undertakings and
obligations in relation to a project.
