By James Glynn SYDNEY--Australian Treasurer Wayne Swan said Wednesday the country's mining investment boom is now at an "advanced stage," but added that a mining export surge will follow as new production comes online. Confidence in the outlook for Australia's mining boom has been dented by a soaring Australian dollar, two-year lows in both iron ore and coal prices, as well as a slower Chinese economy. With major mining companies signaling growing caution about some of their investment plans due to falling commodity prices, Mr. Swan said it was normal that not all projects will be completed. "But what is often forgotten is just how much of the overall investment pipeline is already at an advanced stage," Mr. Swan told business leaders in Canberra. Mr. Swan said the investment that has already been locked in now is a significant amount. "The advanced component of the pipeline still represents a massive increase in investment in our economy, standing at a record A$260 billion," he said. "These projects are largely locked in, are either committed or already underway." Australia's mining boom has largely insulated the A$1.4 trillion economy from global woes in recent years. But mining companies, including Rio Tinto PLC (RIO), this month have announced job cuts alongside earnings results to cope with dwindling profit. Mr. Swan said Australia's attractiveness as an investment destination had changed fundamentally in recent years, describing the Australian dollar as a "safe haven." "Gone are the days when we were just a bet on commodity prices or a punt on China. The game has changed in the wake of the worst global recession in 80 years," he said. The Australian dollar is soaring well above parity with the U.S. dollar, buoyed in part by strong capital flows from global central banks seeking the safety of Australia's AAA-rated bonds. The rising value of the Australian dollar, which is also at multi-decade highs in trade-weighted terms, has fueled alarm in some pockets of the economy. Mostly manufacturers have felt the sting of lost competitiveness, but recently miners have complained of rising costs. "Our attractiveness as an investment destination has contributed to our sustained high dollar, which is making business harder for many trade-exposed sectors," Mr. Swan said. Write to James Glynn at james.glynn@wsj.com
