Production on the sequel to George Miller’s hit film Happy Feet has officially started in Sydney.

The original film which follows the story of a tap dancing penguin won the 2006 Best Animated Feature Oscar.

Today cast and crew returned to their roles, with dancers donning motion capture suits to rehearse some of the penguin dance numbers at Sydney’s Fox Studios.

Actors Robin Williams, Elijah Wood and Hank Azaria are also in town to lend their voices to the film for the next two weeks.

But Miller remained tight-lipped on what audiences can expect from Happy Feet 2.

“It’s a different story. A lot of the same characters, but it’s a different story with a lot of new characters,” he said.

Miller says Australia is well-placed to take advantage of the new technology now being used in film, as seen in recent films Avatar and District 9.

“This is an absolutely wonderful moment to be in the industry. Everyone thought cinema was dead and then we get the kind of movies you’re seeing now. And we’ve got the ability to make them,” he said.

But he says complacency in terms of investment in the film industry has also held the nation back.

“In NSW, in Australia, I do believe we’ve been too lazy. We’ve let others steal the march and now it’s changing,” he said.

“This is a brilliant time because there are so many jobs, and so many incredible talents and skills.”

The New South Wales Government says targeted investment has led to great returns, with the screen industry contributing more than $430 million to the state’s economy each year.

Premier Kristina Keneally says films such as Happy Feet 2 will provide a much needed injection to the state’s coffers during the three years of its production.

“Like so many industries, the local film industry has been doing it tough as a result of the global financial crisis and 500 jobs to our local industry over the three years is a very welcome boost,” she said.

Ms Keneally says in the final six months of 2009, an investment of $5.7 million towards 34 local film and television projects generated $69 million in expenditure.

“[It is] a good return on investment, growing this industry in NSW,” she said.

Miller says he is excited to be using the new motion capture studio at Sydney’s Carriageworks, which he says is the best in the world.

“The stuff we’re seeing already, I’m really, really happy with; where we’re going on it,” he said.

“Technology’s moved so quickly … the look already has improved and we’re just going to do our best to make the best film we can.

He says the success of places like Wellington in New Zealand as a film technology hub have been inspirational.

“I don’t think we would have even attempted this had I not seen what they did in Wellington,” he said.

“They’ve got the best talent pool in the world. Look at what they’ve done. Avatar, District 9 are two of three films nominated for visual effects.

“Wellington is a tenth of the size of Sydney and that economy has shifted dramatically. We go down there to get work done. That can be done here.”

Happy Feet 2 is scheduled for release in late 2011.

Elijah Wood and Robin Williams are in negotiations to reprise their roles in the Happy Feet sequel.

Director George Miller is returning to helm the new animated film, which will bring together the cast in Australia early next year to record the voice roles, says The Hollywood Reporter.

Wood will again play dancing penguin Mumble. Williams is coming back to voice South American penguin Ramon and baritone-voiced Lovelace.

The original Happy Feet grossed more than $380m (£231m) at the worldwide box office and scooped the Oscar for ‘Best Animated Feature’ in 2007. Source