PERTH (miningweekly.com) – Diversified miner BHP Billiton’s chairperson Jac Nasser on Thursday said the potential investment and job creation in the Australian resources sector over the next decade could mirror those experienced in the past ten years if a number of industry issues could be cleared.

In a presentation to the Australian British Chamber of Commerce, in Melbourne, he noted that the resources sector accounts for some 50% of Australia’s exports, and was responsible for investing around $230-billion into the Australian economy over the past five years.

During the last year, the resources sector paid $20-million in taxes, and accounted for over one-million jobs.

“Given the continued growth in China and Asia, over the next decade, the potential investment and jobs created could be as big as the last ten years. So by working together, I believe governments and resource companies can secure Australia’s future.”

However, Nasser noted that despite the growth opportunities offered by the growing Asian demand, the Australian resources industry was facing a number of issues which could hamper this, including the rising costs of doing business, a stronger Australian dollar, onerous tax and regulatory requirements and a decrease in productivity.

“So when we talk about capturing the next generation of opportunities in the resources industry, we need a new plan – a plan with national productivity at its core,” Nasser said.

“We have all the ingredients of a large-scale, high-quality industry that is centered in Australia and we, as a country, are really good at resources. But we are at a tipping point. So it is important for Australia to get this right.”

Nasser said companies needed to look at running more efficient and flexible operations, at a higher level of productivity. This could be achieved, he inferred, by increasing competitiveness and attractiveness to global capital, wasting less, and getting the most out of the existing resources, especially through the implementation of technology and innovation.

However, he noted that the government also had a role to play by introducing policy and economic reforms that were conducive to investment.

“In the past, I have suggested two key levers that will make a difference. These two levers – a fair tax system and a robust and fair industrial relations framework – have always supported the confidence that generates long-run investment, productivity and wealth creation.

“I haven’t changed my view of their importance,” Nasser said.

He noted that Australia’s resources underpin the once-in-a-century urbanisation and industrialisation of countries like China and India – from a demand perspective the outlook for the industry remains positive.

However, Nasser said the reality was that Australia was facing a new generation of stronger, smarter competitors.

“The resources industry in Australia has, and should continue, to be one of our greatest competitive assets. We should fight to keep this.

“Our industry is the driving force for Australia’s opportunities and is aligned with every Australian’s aspiration for a better life. But it is our collective responsibility to get productivity to competitive levels – backed by the right regulations, the right infrastructure, the right tax framework and the right climate for innovation.”