The announcement comes as the state faces a critical skills shortage in the sectors and just a day before the state budget is announced.

State treasurer Jack Snelling said the cash injection was vital considering about 25-30,000 spots needed to be filled in the transport and engineering sectors within the next five years.

Dubbed the Mining and Industry Training Centre, the centre will be located at Regency Park and will consolidate programs already delivered across the state TAFE network.

The centre is slated to be completed by 2014.

"The state-of-the-art facilities will ensure the centre becomes a national leader in its field," Snelling said.

"It will complement the states industry centres for business, arts, hospitality and building."

Among the programs to be offered at the centre include geoscience and mining, mechanical and civil engineering and wielding and fabrication.

Employment, Higher Education and Skills Minister Tom Kenyon said to date these programs currently accounted for about 3000 students.

"It's anticipated that this number will increase as the employment market expands and the new centre becomes fully operational," he said.

Programs that would result in major growth include heavy vehicle and diesel mechanics, mechanical and civil engineering, geoscience and land information management systems.