PLEASURE&PAIN
The economic reality of today’s
resources sector
Steve Knott
Chief Executive
Australian Mines and
Metals Association
As the resources industry reflects on the challenges
and opportunities presented throughout 2013, in
this article Australian Mines and Metals Association
(
AMMA) Chief Executive Steve Knott critiques the
health of the sector and highlights reform priorities for
the Abbott government and why employers can look
to the New Year with a renewed sense of optimism.
For 95 years AMMA has operated as Australia’s national
resource industry representative body with an underlying
vision to ensure our sector remains a globally competitive
place to invest, employ people and contribute valuably to the
national wellbeing.
Throughout 2013 resource employers have navigated
an increasingly complex and challenging operational
environment, but it is clear our sector continues to be a
key driver of improved wellbeing and living standards
across Australia’s wider community.
Following a decade of record capital investment and
employment growth in our industry, there remains much
to be positive about leading into 2014. Data from the
Reserve Bank of Australia shows our industry generates
1.1
million Australian jobs and $250 billion, or 18%, of
the nation’s annual output. This is on top of the $20 billion
in taxes and royalties generated by resources activities
each year.
Lately, some economic and political commentators have
suggested this astounding national contribution is rapidly
coming to an end, but the numbers indicate otherwise.
With $267 billion of new resource projects remaining
committed for our shores and another $232 billion under
consideration, construction activity will remain healthy
while production and export will also reach unprecedented
levels as more mega projects are completed.
There is, however, no escaping that 2013 has also seen
great challenges and a denting of investor confidence
globally. With competition heating up from emerging
resources nations and declining commodity prices
impacting Australia’s high-cost base, about $150 billion
worth of project investment has been deferred or pulled
from our shores.
Rather than simply call an end to ‘the mining boom’,
our industry must reaffirm that the benefits of Australia’s
heightened mining and resources activity can continue for
decades with the right level of regulatory and policy support
to restore Australia’s international competitiveness.
In its first term, the Abbott government has promised
to deliver a more stable and balanced policy platform for
doing business in our sector, and Australia more widely.
As Australia’s national resource industry employer group
and recognised workplace policy specialists, AMMA is
working closely with the Prime Minister and his frontbench
Dampier Salt, Port Hedland
Simon Phelps Photography
While the changing
economic climate has
slightly diminished the
once insatiable demand
for skilled labour,
serious challenges and
opportunities still remain.
Minesite 2013
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