The Economy After the Budget, 1977–78

In summary, several important developments have occurred in recent months which affect the prospects for mining investment in Australia in the immediate future and in the medium-term. Of particular importance are the Commonwealth government announcements regarding the North West Shelf Natural Gas project and the various changes to tax provisions announced at the same time, and the presentation of the government's new uranium policy. These recent announcements make it more likely that Investment In the North West Shelf project as well as in uranium mining projects will proceed in the period to 1980-81. Recent developments in overseas economies and particularly In Japan are likely to have the effect of shifting some planned investment in mineral development projects further into the future. It now seems likely that investment in coking coal and iron ore projects in the period to 1980-81 will not reach amounts expected earlier, and that this shortfall will more than offset any more rapid investment in uranium projects. We therefore consider that the projections of aggregate mineral investment presented in Review 2'77 should now be revised downwards.