Red Tape Delays Mining Projects as Just 9 of 80 Copper Mines on Track for Net Zero

A bucket-wheel dumping soil and sand removed from another area of a Newcastle mine, the world's largest coal exporting port, in Australia on Nov. 5, 2021. Saeed Khan/AFP via Getty Images

Tania Constable, CEO of the Minerals Council of Australia, says the industry has been bogged down by too much government red tape and not enough support for supply chains to help meet Australia’s net zero targets.

Speakers at Australia’s largest mining event, the International Mining and Resources Conference and Expo (IMARC), shared similar views on the issue on Oct. 29.

Constable cited the International Energy Agency’s 2021 assessment, which stated that 260 new mines for copper, nickel, lithium, and cobalt were needed by 2030 to meet demand for electric vehicles and batteries.

Yet, progress is slow.

Investment in mining is also on the decline, with a projected 5.2 percent drop in capital expenditure this year.

“If we look at the big three, copper, nickel and lithium mines—mining is getting harder... of the 80 copper mines needed globally, only nine have been progressed, while only 21 out of 70 nickel mines are underway,” she said.

Constable says that in order to attract investment, governments must create stable business environments and encourage cross-border collaboration.

“Mining is at the heart of our global economy,” she said.

“It’s the engine that drives our country and underpins our infrastructure, our industry, our defence capabilities and our transition to a clean energy future.

Demand for most materials like lithium copper and nickel, is expected to grow by up to 400 percent by 2035.

“This reality should compel governments to implement enabling policies that foster investment in our sector and fast track projects, ensuring these goals are not only pursued, but at ease,” said Constable.

Shake-Up Needed for Red Tape Hurdles

Meanwhile, high inflation and interest rates have not helped.

Constable said the “elephant in the room” was the “steady stream” of restrictive government policies whether they be around industrial relations, environmental or cultural policies—such as the case with the Regis gold mine proposal that has been stalled when cultural significance was claimed over part of the proposed site.

Constable called on the government to establish mechanisms to provide credibility, transparency, and accountability for delivering new global supply chains.

“Last week, the Minerals Council of Australia led a delegation of 15 European Union ambassadors on a tour of mining operations in Western Australia,” she said.

“This visit followed the signing of an MOU between the EU and Australia aimed at strengthening ties around critical minerals.

“Our Minister Madeleine King and Minister for Trade Don Farrell did a great job facilitating this partnership, but we must act on the partnership. We must make sure these sorts of visits are followed up by real action between governments and with business.”

The Epoch Times contacted the office of Resources Minister Madeleine King for comment.