Economic Policy

Overview

Australian mining is a nation builder and a global leader.

Over the past decade, the industry contributed to $2.4 trillion in resources export revenue, $252 billion in mining wages, $206 billion in company taxes, $150 billion in royalties, and generated 21 per cent of the economy’s growth.

The royalties and company tax paid from mining has been critical for governments to afford services and infrastructure like health, schools, and hospitals.

The industry can increase its contribution to the economy, regions and communities with the right policy settings. A better business environment is necessary if Australian mining is to unlock its full potential to drive investment and productivity growth.

More than ever, Australia needs more investment along the entire mining value chain to boost the economy’s performance. It is through strong economic growth that more investment, jobs, higher real wages and higher incomes are delivered. Strong economic growth is needed for budget repair and reducing the nation’s debt burden on future generations.

The opportunity ahead

By 2030, to meet demand for electricity storage alone, the world will require 50 new lithium mines, 60 new nickel mines and 17 cobalt mines. Global mining investment is expected to increase by US$100 billion annually from current levels to produce the mineral commodities required for the world to achieve net-zero emissions by 2050. The economic opportunities this presents for Australia are significant, but not guaranteed.

Unless the industry has favourable investment conditions the opportunity will be missed, given the long lead time that exists from discovery to production for new mines – up to 18 years for a nickel mine. Australia has over 100 prospective mining and processing projects totalling about $50 billion of investment and potentially providing around 30,000 construction jobs and 20,000 operating jobs. Converting these prospective projects into actual investment is dependent on government policy settings not lowering returns on investment.

Policy Priorities