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PERTH (miningweekly.com) – The Minerals Council of Australia (MCA) on Thursday said that the latest release of the Fraser Institute’s Annual Survey of Mining Companies has sounded the alarm on the need for policy reforms to drive investment in the resources sector.
Only two Australian jurisdictions were named in the top ten most attractive jurisdictions for mining investment globally, with Western Australia falling from its previous ranking of number one to number four on the list, while South Australia was ranked as the seventh most attractive jurisdiction.
Queensland was ranked at number 16, the Northern Territory at number 19, New South Wales as number 27, Victoria as number 56, and Tasmania as number 63.
“While Australia remains an attractive place to do business, the survey results show other mining regions in North America and Africa are becoming more competitive as investment destinations because of improving investor perceptions of government policy.
“As a result, all states except New South Wales have slipped in the survey’s international rankings of regions’ investment attractiveness,” said MCA CEO Tania Constable.
“Urgent reforms are needed to deliver internationally competitive tax and royalty rates, faster project approvals and less regulatory duplication to attract more job-creating investment in Australia’s world leading mining industry.
“Australia cannot take mining's contribution to jobs, investment and communities in the future for granted.”
Constable said that despite a very challenging 2020, the Australian minerals industry drove prosperity in Australia, making substantial contributions to investment, exports, wages, jobs and government revenue.
“There are 240 000 people directly employed by the resources sector and a total of 1.1-million direct and indirect jobs in the mining and mining equipment, technology and services sectors.
“Mining companies also support thousands of regional businesses around Australia and their workers who provide essential services that keep the industry operating.
“In addition to new jobs across the nation and paying its fair share of taxes and royalties, the mining industry also supports local communities through backing local businesses through the Covid-19 pandemic and donations to hospitals, charities, child care centres and schools.”
Constable said that policy reform and greater investment would ensure that the minerals industry continued to contribute significantly to Australia’s economy and communities.
The Association of Mining and Exploration Companies (Amec) has criticised the latest survey from the Fraser’s Institute, stating that it “missed the mark”.
“Through this past year, the mining and exploration industry has received incredible support from all Australian governments, state, territory and Commonwealth. In 2020, despite the impact of Covid-19, Australia has seen record production and exports, and near record levels of mineral exploration and mineral investment,” said Amec CEO Warren Pearce.
“These achievements have been made possible by the commitment of industry and government to work together. As the Covid-19 pandemic hit Australian shores, our industry was able to stay open and keep operating.”
“This achievement, at a time when many operations in competing mining jurisdictions had been forced to close or operate under severe restrictions, has drawn significant international investment to Australia’s vast minerals prospects, where it was clear we would be able to continue operations.”
Pearce added that these outcomes clearly demonstrated the continued strength of Australia’s minerals investment attractiveness, despite the challenges of last year.
“Across Australia there have been a suite of recent successful discoveries over the last two years, further demonstrating the continuing mineral potential for future development and the growth in exploration, and the number of mines approaching production have boosted employment and investor confidence.
“This success should not allow us to lose focus. There are still many changes that need to be made to streamline our regulatory frameworks and deliver a more efficient and supportive regulatory environment here in Australia.”
He noted that many such initiatives were under way around Australia, and added that Amec would continue to work with governments to deliver a welcoming investment environment for our sector, to drive this investment.
“More work needs to be done, but to suggest Australia’s position for investment attractiveness in the world has fallen, simply doesn’t stack up,” said Pearce.