MACKAY will ride the back of a strong coal sector, but will struggle to house the people it needs to drive it.

BIS Shrapnel's Mining in Australia 2011 to 2026 report, released yesterday, forecasts annual mining investment in Australia will surpass $80 billion by 2015 (in constant 2008-09 prices).

It will be boosted by the development of multi-billion-dollar projects across the oil and gas, iron ore, coal and copper sectors.

According to the report, the real value of mining production will rise almost 50% over the five years to 2014-15, following a decline of 2.8% in 2010-11 due to the Queensland floods that waterlogged many mines.

BIS Shrapnel senior manager of infrastructure and mining Adrian Hart said the mining sector was certainly providing an upside to our economy, in which there was still concern about manufacturing and retail sectors.

But with the expansion of mining projects in the Bowen Basin, a place like Mackay will struggle to keep up, he says.

"I think you (Mackay) are going to struggle to fit more people in there and basically get all the infrastructure you need," he said.

"Somehow we have to accommodate everyone and provide services and infrastructure."

Along with new projects, Mr Hart said the strong export market for Australian resources was helping to keep the economy strong.

"If you look at the ABS (Australian Bureau of Statistics) stats, there are about 200,000 people employed in mining throughout Australia, which may include construction workforces for building new projects.

"We believe that mining employment is going to rise to 300,000 by the middle of the decade.

"It is all going to be driven by increases in production here that is going to require people driving the trucks and operating the equipment and everything else to make the mines work.

"But it is going to be a challenge - where do you find all those people?"