Minerals Council of Australia (MCA) chair Andrew Michelmore didn’t mince words at yesterday’s Melbourne Mining Club luncheon, describing global supply chains as “once reliable, but now fragile”.
“Trade is no longer simply about supply and demand; it is a strategic weapon,” he said. “We have entered a new era of economic nationalism.”
Referencing the recent tariffs implemented on trade partners by the US, Michelmore emphasised Australia needs to act quickly on implementing policy settings that prioritise investment in one of Australia’s largest economic contributors.
“While mining continues to be the backbone of the economy, investment is stalling,” he said. “Policy settings are holding the industry back at a time when we should be unlocking its full potential.”
Michelmore pointed to the “Same Job, Same Pay” industrial relations (IR) policy as being one such setting in need of “fixing”.
“We have seen this story before. In the 1980s, industrial disputes crippled the Pilbara and other regions forcing a painful reset of workplace relations,” he said.
“If the government wants sustained wage growth and long-term investment, it cannot be designing an IR system that increases costs and uncertainty, making both harder to achieve.”
Approvals processes were also on the docket of concern for Michelmore as he highlighted that lead time to production for new projects is now in the vicinity of 18 years – up from just 13 years for mines that started 15 years ago.
“Capital will only flow to countries that provide the right environment to do business,” he said.
“These challenges are not new, nor are they hypothetical – they are real, they are urgent, and they demand action now.”
Michelmore left those in attendance at the Melbourne Mining Club luncheon with a warning to leave complacency behind.
“We must be relentless in making the case for a globally competitive, investment-friendly, and productivity-driven mining sector,” he said.
“We have built one of the strongest mining industries in the world. Now, we must fight to keep it that way.”
