Minerals Council of Australia Report: Australian Miners Losing Competitiveness
A new report released by the Minerals Council of Australia reveals the declining competitiveness of Australia’s mining industry and the policies required to regain Australia’s position as a premier global supplier of minerals.
The 88-page report commissioned from Port Jacksons Partners states that Australia’s rising capital costs mean new projects are becoming less competitive.
“Only five years ago we could build coal and iron ore projects as cheaply as our competitors. Capital costs, however, are rising more rapidly here than in the rest of the world,” the report states.
According to the report, increased labour, energy and transport costs all play a part in the mining industry’s declining global competitiveness.
Mineral Councils spokesman Mitch Hooke said while the mining boom is not over, the dynamics of it has changed. He said that five per cent could be stripped off Australia's economic growth over the next 30 years if there is no major policy reform.
The report states that the ‘burning platform’ for the local mining industry is the problem of rising structural cost competitiveness. As a result, “Australia cannot bank on continued commodity price increases” if it wants the mining-led boom to last.