Australian mining magnate Gina Rinehart has urged the federal government to reduce regulations for the mining industry so that the nation’s natural minerals and resources can be better utilised to provide security and stability in the Indo-Pacific.
This follows concerns from Japanese gas company Inpex, which said in April that regulatory changes to natural resources such as gas would “choke investment, strangle expansion” and would “allow Russia, China, and Iran to fill the void.”
“We cannot forget the important role Australia’s exports play in regional security and stability,” Rinehart said.
“We should learn from the reality of Germany and the U.S.A.—their imports from Russia [are] effectively funding Russia’s terrible war against Ukraine.
“If Australia does not step up our investment and exports, if we allow Russia to become the preferred supplier of energy and met coal to Asia, that will have consequences for the security of Western countries.”
Currently, Australia supplies Japan with 70 percent of its coal, 60 percent of its iron ore, and 40 percent of its gas imports.
In April, Woodside Energy chief executive Meg O’Neill said the gas industry was essential in maintaining Australia’s strategic partnerships, including regional security.
O’Neill argued that unstable regulatory outcomes would impact the country’s energy industry domestically and internationally, especially as countries such as Japan depend on Australian resources to power their lights in Tokyo.
Meanwhile, India imports 50 million tonnes of Australian coal per year, accounting for 80 percent of Indian coal imports.
“India wants to double its steel production by 2030, meaning Australia should ramp up our critical metallurgical coal exports to help our ally,” Rinehart said.
Rinehart added that the recent Australian delegation to India “barely dealt” with energy exports, even though coal accounted for 70 percent of Indian imports.
State and Federal Government Criticised for Delayed Approval Process
Rinehart pointed to the federal government’s delayed approval for new mines, which she said takes 16 years to get off the ground.“But that was in 2019, things are far worse in Australia now, with more and more unattractive to investment legislation, and more and more coloured tape making approvals increasingly burdensome, time-consuming, and risky,” Rinehart said, adding that the current trend for restricting mining due to environmental reasons is “very popular now.”
“But let’s not forget, all this environmental tape takes up staff time, costs money, and means less investment, less philanthropy, less bonuses, and less money available for salary increases, improving conditions, training, and other benefits.”
An example she noted was Hancock’s Roy Hill mine, which started production in Western Australia in 2015. Hancock invested hundreds of millions in the projects, going through a combination of red tape and setbacks by the WA state government before the project got started.
“But this we did, plus the more than 4,000 government approvals and licences pre-construction, more again for actual construction, and the bonanza to the state and country was born,” Reinhart said.
Additionally, over-regulation has seen mining investment fall to $40 billion, thus creating a $60 billion investment gap that would be a “missed opportunity” for Australia, she said.
Moreover, Rinehart called for the federal government to consider that for its green policies to be feasible, metals and minerals need to be mined.
“You simply can’t build minerals-guzzling EVs without massive mines,“ Rhinehart explained. ”The average EV contains over 206 kilograms of copper, lithium, nickel, manganese, cobalt, graphite, and rare earth elements.”
Mining Industry Contributing to State and Federal Budget Surplus
The recent federal budget surplus of $4.2 billion has been attributed to tax revenue from the mining and resources sector.“When commodity prices are high, Australia wins. The resources sector pays more than 30 percent of Australia’s total company tax income to improve our nation’s budget bottom line,” Tomkinson said.
“Commodities remain crucial to the prosperity of our economy and go hand-in-hand with the focus on further developing our critical minerals capabilities as the world continues to decarbonise in line with the Paris Agreement.”
According to WA’s Chamber of Minerals and Energy, mining and resources makeup 69 percent of all Australian goods and services exported—up three percent from the previous year.
Additionally, Australian resource and energy exports are forecast to set a record of $464 billion in 2022–23.
For example, Rinehart said that Hancock’s “mega” Pilbara and Hope mines projects have brought billions to both the WA state government and the federal government. The Pilbara project, for instance, has brought in $3 billion in royalties to the WA government and $5.3 billion in company tax.
“[I]t’s not just get a tenement and money spurts out, indeed most tenements, money never spurts out, it’s a risky business after all, and takes years of hard work, thousands of approvals and licences, and significant investment,” she said.
