Decade low for new resource projects Investment in new resource projects has hit a decade-low slump. Picture: Ian Waldie/Bloomberg Source: Supplied THE amount being invested in Australian resources projects is tumbling as the number of developments slides to its lowest level in almost a decade. Official figures released yesterday lay bare the extent of the investment slowdown as the mining boom fades. They reveal that the value of "committed" projects - those either under way or about to begin - tumbled by 10.4 per cent, or $28 billion, in the six months to October. A report by the Bureau of Resources and Energy Economics predicts investment will keep sliding as commodity prices struggle to reach former highs. Weaker prices and rising costs have eroded the investment pipeline, it says. "The latest commodity price cycle has reached its apex and the decline in the prices of most commodities over the past 12-18 months has created more challenging investment conditions," bureau deputy executive director Wayne Calder said. Crunch time. Australia is now seeing a transition from the investment phase of the resources boom to the production phase. The number of committed projects in October was 63 - the lowest since early 2004 - with a combined value of valued at $240 billion. That compares with 73 projects worth $268 billion six months earlier. In the six months to October, just five projects worth a combined $1.7 billion reached the commitment stage - the lowest in number and value in more than a decade. The drop reflects the end of the "record period" of mining investment, the "mega" projects valued at $5 billion or more that made up more than half the investment value. These mega projects include the Jimblebar mine expansion in the Pilbara. Mr Calder said the investment boom had led to an oversupply and a softening of commodity prices. "We have seen a rise in the number of projects being delayed or changing scope," he said. Forward projections indicate that investment in the resources and energy sectors is likely to decline over the medium term. as proponents consider their options," he said.