A new report from the Minerals Council of Australia is timely, given its argument that mining investment will continue to play a vital role in the country’s future, but only if managed properly.
The study—Minerals-plus:An investment strategy for a resource intensive future—covers a lot of ground but argues there’s been a “seven-year stagnation in mining capital”, adding its urgent we get it flowing again if we want to continue to be a productive, green and global economy.
It’s a reminder, I think, of how important mining has been to Australia, fundamentally underpinning our way of life. As the Australian Financial Review said recently, “Mining has made all Australians prosperous, not just miners”.
And adding—“Australian politicians and voters don’t always fully grasp where our good fortune comes from”. I think that’s true, but it doesn’t mean we can’t find common ground.
One way to do that says the Minerals Council of Australia (MCA) is to overcome a “challenging business environment” to encourage development of the many potential projects we already have here.
That’s certainly true for copper. The country has plenty of major resources right across the spectrum from major mines to promising finds to exploration, but where the production potential has not been fully tapped.
The MCA says government can help. They suggest policies like internationally competitive tax settings, expanded trade and investment opportunities and faster environmental planning can improve the mining environment. I agree.
As the country moves toward Net Zero this is going to become even more urgent given that critical metals like copper or nickel will be absolutely necessary to help get us there.
Finding the middle path between too much regulation and too little has always been a challenge. The MCA report makes clear that we need to get that right as the world decarbonises and electrifies, but it’s also clear that government and the community need to be part of the solution too.
Cheers, John Fennell
Report: https://minerals.org.au/wp-content/uploads/2024/08/Minerals-Plus__FINAL_September-2024.pdf