Australia’s richest woman Gina Rinehart has called for greater support for the mining industry from Parliament.
In an address to industry executives and Opposition Leader Peter Dutton on Nov. 22, the mining magnate said too much red tape was hampering the sector.
“The reality of what the government is doing with its excessive and complicated red tape, and the risk of bad policies being introduced, is that we risk not even achieving replacement tonnage to maintain current production, let alone massively expanding across a range of minerals and metals,” Ms. Rinehart said.
“Now I’m suggesting something in addition—encourage and support people from our industry to put themselves up for Parliament. We need strong people in government, not afraid to stand up for common sense, and for mining.”
Ms. Rinehart was critical of the Albanese Labor government, suggesting they should relocate their federal office to Western Australia’s (WA) Pilbara Region to “learn about where Australia’s revenue is generated,” before pointing to delays in mining projects due to environmental policy.
“These kinds of delays make Australia increasingly unattractive for investment and if they occur for a relatively small project, 1.5 percent of WA’s iron ore production utilising mainly existing infrastructure, what hope do larger projects have.”
According to the Australasian Institute of Mining and Metallurgy (AUSIMM), the mining industry comprises 75 percent of the country’s exports, it employs approximately 1.2 million Australians, turning over $50 billion annually, and has a net worth in exports of around $160 billion.
The country has the world’s largest estimated reserves of iron ore with 52 billion tonnes or 30 percent of the world’s estimated 170 billion tonnes.
In 2022, Australia accounted for 880 million metric tonnes of global iron ore production, significantly more than the world’s second-largest producer Brazil, which produced 410 million metric tonnes.
What Does the Red Tape Cost?
According to research conducted by the Institute of Public Affairs (IPA), regulation of Australia’s mining and natural resources sector sits at its highest levels in history.These include cost recovery obligations found under the Mining Act 1978, the Environmental Protection Act 1986, and the Rights in Water and Irrigation Act 1914.
A cost recovery obligation is a requirement imposed on companies or individuals engaged in the extraction or use of natural resources to cover environmental protection activities.
In an analysis of Western Australia’s natural resources sector, the state’s Chamber of Minerals and Energy (CME) reported that approval processes surrounding mining projects could take 10-15 years due to these regulations.
Current cost recovery proposals are also estimated to cost mining companies in excess of $3-5 million upfront.
A need to deregulate Australia’s natural resources sector in the wake of a global spike in demand for critical minerals has been publicly noted by the current Labor government.
Labor Says Mining Will Benefit For Global Net Zero Push
Treasurer Jim Chalmers said in an address to the 26th World Mining Congress in Brisbane earlier this year that a 450 percent increase in mineral production would be needed to meet net zero by 2050, given that critical minerals are conducive to the production of renewable energy infrastructure.Australia’s Minister for Resources and Northern Australia Madeleine King made a speech to Parliament in August echoing a similar view.
“Global demand for critical minerals will increase over the next seven years by 350 percent. That is an extraordinary level of growth, and Australia has the natural resources that will enable us as a nation to respond to this international demand,” Ms. King said.
Days later, Ms. King gave a separate speech to the Australian Bush Summit saying more credit should be given to the sector for its contribution to Australia’s wealth.
“Every east coast-based parliamentarian and journalist should experience Perth airport on any given Monday or Tuesday at five in the morning to witness the extraordinary airlift of workers into the north that occurs week in, week out to ensure our nation’s continued prosperity off the back of our remarkable geology and the efforts of resources industry”, Ms. King said.
