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The surge in capital expenditures has expanded to include crude oil, natural gas, and agriculture, and prices of commodities such as copper, iron ore, crude oil, sugar, and wheat have soared.
The surge in investment has also created the possibility that as the cost rises, the already tight supply of equipment and services will face bottlenecks in the short term, and project delays may occur.
According to a survey of industry executives and consultants, global mining spending will reach a record $115 billion to $120 billion next year, exceeding the peak of $110 billion in 2008.
The rise in spending is driven by mining companies such as Vale, Rio Tinto and Xstrata, which are hoping to capitalize on raw material demand and pricing for a generation.
The Australian government's resource forecasting agency expects mining spending to grow 58% from this year. Australia is the hottest mining country.
Also in the energy sector, consulting firm Wood Mackenzie expects the world's largest crude oil and gas company to invest nearly $100 billion in development projects next year, up 12% from 2010.
Chevron, the second-largest US oil company, announced last week that it has the largest capital expenditure to date. It is expected to invest $26 billion next year, a 20% increase from 2010.
Rio Tinto's chief executive, Tom Albanese, said the mining industry is entering a period of what he calls a “growth response†to rising demand and rising prices. "This industry is more optimistic."
Joy Global CEO Mike Sutherlin said: "We are entering the early stages of another multi-year expansion of the mining industry. Joy Global is one of the world's largest manufacturers of mining equipment such as excavators.
Executives said that agribusiness is also increasing investment. John Deere, the world's largest tractor manufacturer, announced 2011 spending this year to produce a record number of new models.
At a time when natural resources companies are investing more, executives are concerned that rising wages and costs and extended lead times will cause supply to be unable to meet rising demand and push up commodity prices.
Commodity analyst Colin Hamilton said: "The extent of 2007-08 has not yet reached the level of 2007-08, but cost increases and delivery issues are re-emerging. In 2007-08, out-of-control costs and labor And the shortage of equipment has caused a catastrophe in the commodity industry.
The industry is forming a consensus that global mining spending will exceed pre-crisis levels next year. This underscores the industry's confidence in the economic recovery dominated by China and other fast-growing markets.