MCA CEO Tania Constable warns against the oversimplification of traditional commodities as mere "exports"
Minerals Council of Australia (MCA) CEO Tania Constable has warned that the nation is jeopardising its “economic golden goose” and has called for more support for the mining industry.
In an opinion piece, published in The Courier Mail, she underscores the critical role that the mining sector plays in Australia’s economic stability.
Constable likens the mining industry to the age-old fable of the goose that laid the golden egg, emphasising the historical contribution to Australia’s economic prosperity.
Citing last week’s National Accounts, which revealed a rise in government spending, she highlights that iron-ore, coal and gold exports prevented the economy from regressing in the final quarter of 2023. Iron-ore exports alone surged by 12%, injecting an additional A$13.5-billion into the economy, while coal exports grew by 5%, contributing an extra A$8.2-billion over the quarter.
In Queensland, the mining sector made a substantial impact, adding A$70-billion to the economy over the past year and providing employment to more than 70 000 full-time workers. The industry’s contributions extend to A$18-billion in royalties, playing an important role in supporting public services and maintaining Australia’s high standard of living.
Constable emphasises that revenue generated from the mining industry represents more than a figure on a balance sheet; it supports families, builds communities and funds essential services.
However, she expresses concern about the sector’s uncertain future owing to an increasingly uncompetitive tax system and regulatory environment burdened by challenges.
In the opinion piece, Constable warns against the oversimplification of traditional commodities as mere "exports" and urges policymakers to address regulatory, energy and labour challenges to ensure the sector's continued success.
She says ignoring the risks and hard work that underpin the mining sector is akin to the short-sighted farmer in Aesop’s fable, who, not content with his regular supply of golden eggs, slaughtered the goose hoping to find a treasure trove inside, only to end up with nothing.
“We cannot afford to make the same mistake by undercutting the sector with unsupportive policies and onerous tax burdens that could cripple its capacity to deliver the golden eggs – revenue and jobs upon which so much depends.
“The mining sector’s investment landscape is marred by environmental approval uncertainties, escalating energy costs, and damaging changes to our industrial relations policies.
“The prolonged timelines for project development, exacerbated by potential legislative changes and legal battles, highlight the urgent need for policy reform. Australia’s mining sector has long been a global leader, a status that should not be put at risk by a narrow focus on politically favoured commodities,” she says.
Constable urges policymakers to ensure that Australia’s strategy is one that encourages emerging mineral markets and reinforces traditional mining commodities.
As government expenditure rises, a robust mining sector is needed to sustain public spending, advance Australia’s economic agenda and keep the budget in the black.