Australia most attractive for mining investment as AMEC and MCA warn against red tape
Australia is the leading mining jurisdiction in the world, with three states – WA, Northern Territory and South Australia – in the top 10 for investment, according to the Fraser Institute Annual Survey of Mining Companies 2022.
The US and Canada also have three jurisdictions each in this year’s top 10, with Nevada topping the global list based on the Investment Attractiveness Index.
WA is second on the list and the top state in the nation for mining investment, followed by the Northern Territory in sixth place and South Australia in eighth.
Association of Mining and Exploration Companies’ (AMEC) chief executive Warren Pearce says the survey is a barometer of how the industry sees the performance and supportiveness of governments and regulatory bodies towards the mining industry.
“Australia continues to be seen as a highly desirable place for investment,” he said.
Mr Pearce says that while these results are encouraging, there is always room for improvement in Australia.
“These include the massive increase in Queensland coal royalties, greater uncertainty around tax increases for petroleum and mining sectors at a Commonwealth level and increasing levels of environment and heritage regulation across the board,” he said.
“Australian governments must continue to take notice, and work with industry, to deliver greater certainty and efficiency to support the mining and mineral exploration industry.”
Minerals Council of Australia (MCA) chief executive Tania Constable welcomes the results but says that Australia should not rest on its laurels.
“There are signs that investors are being deterred by poor government processes and policies,” she said.
“Australia’s geological potential will not be able to continue to counterbalance this trend to higher royalties and policy processes that delay approvals and investment decisions.”
Ms Constable says that many resource-rich countries are seizing the opportunity to supply their minerals and metals required for global net zero emissions and calls on the Federal and state governments to overhaul current policy settings on business growth and investment.
“Workplace relations, tax, environment, climate change and energy policies that impose unexpected costs on the mining industry threaten the capital investment that underpins its contribution to the economy and the global efforts to decarbonise,” she said.
“Australia needs more investment along the entire mining value chain to boost the economy’s performance and play its part in the goal of net zero emissions by 2050.”
The Fraser Institute Annual Survey of Mining Companies 2022 collected 180 responses covering 62 jurisdictions.
