Mining matters

In a rapidly evolving global economy grappling with the energy transition and supply chain constraints, the demand for certain minerals and metals is ever changing.

Looking towards the future, the Australian gold and coal industries are adapting.

Colossal pay rise for coal miners

In July, the Fair Work Commission (FWC) made a decision that could change the future of Australia’s resources sector and its workers.

The ruling captures BHP’s (ASX: BHP) operations services under the Federal Government’s Same Job, Same Pay legislation, ensuring labour-hire workers are paid the same wages and conditions as BHP’s directly employed staff.

The law, implemented by the Federal Government in 2024, was designed to address the wage disparity seen across the Australian resources sector, which sees labour hire staff earning substantially less than directly employed workers in identical roles.

Following the ruling, staff at three BHP owned Queensland coal mines — Goonyella Riverside, Peak Downs and Saraji — will receive substantial pay rises.

According to the Australian Council of Trade Unions, about 2200 employees could be impacted by the ruling and will see an average annual salary increase of $30,000.

The ruling has been met with mixed responses.

Federal Resources Minister Madeleine King says workers that stand alongside one another and do the same job in the same conditions with the same qualifications should be paid the same.

“The FWC decision today demonstrates that the legislation ensures fairness in workplaces right across the country,” she said.

The wage increase may improve the financial position of an extensive number of mining families across the state, with a potential ripple effect for local economies.

However, many are concerned the ruling will be a catalyst to substantial changes in workforce structure across the resources sector, potentially negatively effecting regional employment.

Minerals Council of Australia (MCA) chief executive Tania Constable says this is an incredibly disappointing decision that will directly threaten thousands of specialised contractors who play a vital role in mining operations across the country.

“These businesses exist to provide a specialised service, not just workers, and should never have been covered by these laws,” she said.

“It is now incumbent on the [Federal] Government to find a legislative fix to address the ‘unintended consequence’ of all service contractors being captured.”

A prominent point of contention between key players is how these changes will impact Australia’s industrial relations framework and international competitiveness.

Minister King says the ruling will not undermine the nation’s competitive position in the global coal market.

“What this will do is improve morale in the workplace, it is what Australians expect,” she said.

This case could reshape the foundation of the employment landscape across the Australian resources sector.

Queensland coal: up in dust?

In late July, Federal Prime Minister Anthony Albanese travelled to China, the world’s largest steel producer, on a diplomatic venture with decarbonisation and green steel at the top of the agenda.

Many key industry players are questioning how initiatives like green steel could shape the future of coal, particularly across the state of Queensland.

The coal industry has long been the backbone of Queensland’s economy. Supplied by the state’s world-class reserves, the sector is essential to nationwide steelmaking and power generation, supporting thousands of local businesses and regional communities.

In 2024 alone, according to the Queensland Resource Council (QRC), the sector contributed 24% of total Queensland Government revenue and 14% of jobs throughout the state.

A new report, commissioned by the QRC, has highlighted the scale of coal’s contribution and what is at stake with a current decline in investment confidence.

The report, titled Queensland Coal Sector Economic Contribution Study 2023/24, highlighted the flow-on benefits delivered by the sector. According to the report, the coal industry spent $25.7b in purchases of good and services from 7570 local businesses and supported 798 community organisations through philanthropic, social investment and community ventures.

Over FY24, the coal sector employed 27,002 Queensland locals and supported 387,285 direct and indirect jobs across the state.

Amidst the shift to decarbonisation, what does the future of Queensland coal look like?

QRC chief executive Janette Hewson says the independent analysis confirmed the coal sector has added more than $710b in value to the Queensland economy over the past 15 years.

“It’s well known that coal is Queensland’s most important export which in [FY24] contributed $85.3b to the state economy, including $10.6b in royalties,” she said.

With Australia currently forging its green steel future, the Queensland coal industry searches for its place amongst the future supply chain.

Industry realignment, by moving away from a traditional coal paradigm and embracing decarbonisation, could reshape the future of coal and secure Queensland’s place in the global resources market.

Gold outlook: downhill or second wind?

The World Gold Council has released its Gold Mid-Year Outlook, as the metal continues its record-setting pace, rising 26% in US dollar terms in H1 CY25.

A combination of a weaker US dollar, rangebound rates and a highly uncertain geoeconomic environment has driven this strong investment demand.

The paper examines the base, bull and bear cases for gold in H2 CY25.

The World Gold Council forecasts that under current consensus expectations for continued normalisation gold could remain rangebound in H2, closing roughly 0%–5% higher than current levels, still equivalent to a 25%–30% annual return

Should economic and/or financial conditions deteriorate further, under the bull case, exacerbating stagflationary pressures and geoeconomic tensions, increased safe-haven demand could push gold 10%-15% higher.

Under a bear case, widespread and sustained conflict resolution could see possible 12%-17% pullback from YTD gains.

“As we look forward, one of the questions investors continue to ask is whether gold has reached a peak or has enough fuel to push higher,” the World Gold Council said in its outlook.

“Using our Gold Valuation Framework, we analyse what current market expectations imply for gold’s performance in H2 CY25, as well as the drivers that could push gold higher or lower, respectively.

“Trade-related and other geopolitical risks played a large role, not just directly, but by fuelling moves in the dollar, interest rates and broader market volatility — all of which fed into gold’s appeal as a safe-haven.

“Taken together, these factors have contributed around 16% to gold’s return over the past six months, according to our Gold Return Attribution Model.”

The World Gold Council outlines four key drivers that determine how the market will fare in H2 CY25: economic expansion, risk and uncertainty, opportunity cost and momentum.

“The second half of the year sits on a seesaw, with geoeconomic uncertainty keeping investors on edge,” the World Gold Council said.

“Inflation data have shown signs of improvement, but concerns remain that conditions could deteriorate quickly.

“Dollar-related pressures are likely to persist, and questions around the end of US exceptionalism may dominate investor discussions.

“Overall, these conditions position gold as a net beneficiary — but while the fundamentals remain strong, the gold price has already captured part of these dynamics.

“In turn, sustainable conflict resolution and continued rising stock prices could lure more risk-on flows and limit gold’s appeal.”

In all, given the intrinsic limitations of forecasting the global economy, the World Gold Council believes that gold — through its fundamentals — remains well positioned to support tactical and strategic investment decisions in the current macro landscape.

The global green gold rush

With the Australian gold industry booming, one question is at the forefront of everyone’s mind — how can we make gold cleaner and greener?

A team of researchers from the Chalker Lab at Flinders University in South Australia may have uncovered a solution.

The group of multi-disciplinary experts, specialising in green chemistry, physics and engineering, have developed an innovative approach to gold extraction that has delivered exceptional recovery rates without the expensive environmental costs of traditional methods.

The study, published in the journal Nature Sustainability, demonstrates the successful recovery of high-grade gold from not only mined ore, but electronic waste (e-waste) previously destined for landfill.

According to the World Health Organization (WHO), e-waste is one of the fastest growing solid waste streams in the world and in 2022 more than 62mt of e-waste products were produced globally with only 22.3% being formally recycled.

As the prevalence of ‘urban mining’ grows, recycling valuable materials from waste products, the need for more efficient and benign extraction techniques is growing.

Traditional extraction methods typically use large quantities of highly toxic chemicals, such as cyanide and mercury, which poses serious risks to not only the broader environment but workers onsite and the local community.

Flinders University professor and Chalker Lab lead Justin Chalker says the study aims to provide effective recovery methods that support the many uses of gold while lessening the impact on the environment and human health.

The research team’s integrated approach to gold leaching and recovery is low-cost, sustainable, simple and safe. It involves combining a reagent widely used in water sanitation (trichloroisocyanuric acid), salt water, ultraviolet light and a recyclable polymer — not a dangerous chemical in sight.

The gold is then selectively bound to a novel polymer, developed by the research team, which enables gold recovery from highly complex mixtures. The gold holding polymer is then ‘undone’, releasing the gold and allowing recovery. The polymer is then recycled and reused — ensuring a sustainable cycle.

Visionary methods, such as the one pioneered by these researchers, are crucial for the resource sector to keep pace with the global shift towards environmentally conscious production and circular economy.

Following the study’s success, the team now plans to collaborate with mining industry partners to scale this revolutionary technology — potentially changing the future of gold mining.