PERTH (miningweekly.com) – The value of definite projects in Australia, those under construction or committed, fell by nearly A$25-billion over the December quarter – the most significant quarterly fall in five years.

In its latest Investment Monitor, Deloitte reported on Thursday that the value of projects in its database stood at A$866.3-billion in the December quarter, with mining projects accounting for A$434-billion of the total.

The advisory firm reported a 9.2% year-on-year decrease in the value of mining projects, as major iron-ore projects were wrapped up in the Pilbara.

Currently, there are A$217.1-billion mining projects under construction, A$12.3-billion committed, A$120.2-billion under consideration and A$84.4-billion deemed possible.

In iron-ore, BHP Billiton had completed its A$5.2-billion rapid growth project and Rio Tinto had finished its A$1.2-billion expansion of its Pilbara mines. Moreover, with no new major iron-ore projects set to start up, the trend towards production and exports was well advanced in the sector.

As for coal, Deloitte noted that investment in the sector was still under way, but that it was nearing a turning point, with the GlencoreXstrata Ravensworth project, and BHP’s A$4.2-billion Caval Ridge project nearing completion. Definite coal projects stood at A$18-billion and planned projects came in at A$55.9-billion in the December quarter.

Weak prices and a soft outlook for global demand have hindered further investment in coal projects, Deloitte reported.

Oil and gas projects that will see it through were worth A$201.4-billion in the quarter under review and Deloitte reported that investment continued to be dominated by a collection of large liquefied natural gas (LNG) projects, such as Chevron’s Gorgon project, which recently suffered a A$2-billion costs blowout, which has taken the total cost to over A$54-billion. Planned projects were worth A$304.8-billion, Overall, the value of oil and gas projects fell by 14% year-on-year in the December quarter. Deloitte also noted that no new LNG project had recently been cleared for construction.

During the quarter ended December, A$12.9-billion worth of projects, which were not limited to resource projects, were completed, including BHP’s Jimblebar iron-ore mine and Rio’s A$1.2-billion Brockman 4 iron-ore expansion.

A number of new projects were also added to the Investment Monitor database, including Bandanna Energy’s A$24.2-billion South Galilee coal project and a A$3-billion expansion of the Abbot Point coal terminal.

Meanwhile, the growth outlook for 2014 remained below trend, with the impending peak in resource-related investment spending.

Deloitte predicted that the peak and subsequent decline in resource investment would place pressure on other areas of the economy to pick up the slack. However, it added that the value of definite nonresource projects went sideways after the onset of the global financial crisis, with recovery still expected.