Industry Focus

NATURAL RESOURCES Top 10 projects with final decisions due in 2013* Company Project Comment $bn Woodside Browse LNG Shelved 43 Arrow Energy Arrow LNG Under consideration 20 Woodside Greater Sunrise LNG Possible 13 BHP Scarborough LNG Possible, FID due early 2014 10 Adani Mining Carmichael coal mine Under consideration 10 Hancock Prospecting Roy Hill 1 iron ore Under consideration 9.5 Aquila Resources West Pilbara iron ore Possible, seeking JV partner 7.4 Fortescue Metals Solomon iron ore stage 2 — Under consideration, now $4bn 6.2 Aurizon Railway, Port Headland Under consideration 3.5 Australasian Resources Ltd Balmoral Sth magnetite Under consideration 3.3 *Source: Deloitte Access Economics 'Investment Monitor', Q4 2012 replace the current wave of construction at a time of downward pressure on global gas prices and high construction costs in Australia. Of the $229 billion, some $205 billion are projects under construction or committed and only $24.5 billion are projects under consideration. The coal industry and metal ores (dominated by iron ore) are the two other key segments, with a project pipeline of $52 billion and $65 billion respectively. Together across these industries there are $48 billion of definite projects, broadly flat since the end of 2011, and $69 billion of projects under consideration, down from $90 billion two years earlier. As noted above, there is a great deal of uncertainty surrounding projects that remain under consideration. In Western Australia, the resources project pipeline consists of $119 billion of definite projects—of which $98 billion 126 is accounted for by four oil and gas projects (Gorgon, Wheatstone, Prelude and North Rankin)—and $31 billion of projects under consideration (including the proposed $9.5 billion Roy Hill 1 iron ore site). In Queensland, $91 billion of definite projects are dominated by the three coal-seam gas projects, valued at $63 billion. There is some $40 billion worth of work under consideration in Queensland, including the proposed $20 billion Arrow LNG plant and the proposed $7 billion Carmichael Coal Project (mine and rail) in the Galilee Basin. The Northern Territory's $40 billion resource project pipeline is centred on the $34 billion Ichthys gas field at Browse Basin and its LNG facility in Darwin currently under construction. In South Australia, BHP's decision in 2012 to shelve the proposed Olympic Dam expansion was a blow to the state's resource construction outlook. CLOCKWISE FROM LEFT: Metal ore has a project pipeline of $65 billion; the other key segment— coal—has a $52 billion pipeline; transport and storage is worth $114 billion. 14 Industry Focus

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