Opportunities and challenges facing the Australian resources sector*

Abstract

The resources sector has made a significant contribution to Australia's prosperity over a large part of its postcolonial history. A combination of substantial mineral and energy resources, perceived low sovereign risk, a skilled workforce, technological leadership, openness to direct foreign investment and relative freedom from interventionist government policies has shaped the Australian resources sector into a highly competitive supplier of minerals and energy products to global markets. Despite this strong global market position, the past performance of the resources sector is no guarantee for its future. The sector operates within a highly competitive globalised environment. Its future depends on its ability to remain internationally competitive, while pursuing sustainable development through a combination of resources discovery and exploitation, socially responsible development and effective environmental stewardship.

The mining boom and Western Australia’s changing landscape: Towards sustainability or business as usual?

“…The state's resource endowment is expected to provide a solid platform for economic and industry growth for many years to come. However, endowment alone, as suggested by Penney et al (2012), is not a sufficient condition. Mineral resource production will increasingly be limited by environmental and social sustainability constraints (Prior, Giurco, Mudd, Mason, & Behrisch, 2012).…”

Measures Supporting Minerals and Primary Metals Extraction and Processing

“…The role of the government is for the most part to set the regulatory framework for the mining industry and to collect royalties and tax revenues. For Penney et al (2012), this minimal level of government involvement has enabled the Australian industry to be innovative to remain competitive.…”

“…States and Territories also fund geological surveys through programmes such as New South Wales's New Frontiers initiative or Western Australia's Exploration Incentive Scheme. 13 The generation of this information is intended to support resource development - Penney et al (2012) consider the provision of precompetitive geoscience data as one of the keys to transforming Australia's endowment into exploration and production. However, it also serves other purposes, for example, in natural resource management and disaster preparation and response.…”

“…A skilled workforce is also a factor contributing to Australia's attractiveness as a destination for global mining capital. The rapid expansion in construction and operational work associated with the mining boom has been met via a combination of a high net migration rate and a shift of labour into the mining sector (Penney et al, 2012). However, labour shortages, particularly with respect to specific skills, have led to rapid wage increases, and ultimately, are a constraint on the growth of the mining industry.…”

Assessing the trade‐offs of increased mining activity in the Surat Basin, Queensland: preferences of Brisbane residents using nonmarket valuation techniques

“…The recent mining boom that has occurred in Australia from 2003 (phase 1) and 2009 (phase 2) has led to the overlapping occurrence of an unprecedented number of new mine developments, expansion of existing mines and exploration, with most activity concentrated in Western Australia and Queensland (BREE ; Penney et al . ). The depth of the supply chains involved and the diversity of locations of mining workforces mean that the economic benefits of resource projects are widely spread, leading to increases in employment and income across diverse areas (Hajkowicz et al .…”