AREEA has congratulated newly-elected Western Australian Premier Mark McGowan on his comprehensive election win and has sought further discussions on key policy issues for the state’s resource employers.
Prior to the weekend’s election, AREEA received a commitment from Mr McGowan on a range of issues including FIFO regulation, taxation and energy policy.
In his March 8 letter to AREEA chief executive Steve Knott, Mr McGowan said WA Labor recognises ‘FIFO is an integral part of our resources sector and is here to stay’.
“WA Labor believes that ultimately, it should be the choice of individual workers to choose the option that best suits their circumstances and needs at any particular time, subject to the availability of local housing,” Mr McGowan wrote.
On the Nationals’ mining tax, Mr McGowan described the proposal as ‘job-destroying’ and reiterated his party’s opposition to the proposal. With the National’s failing to win the balance of power, this tax appears well buried.
In his response to AREEA’s challenge on energy policy, Mr McGowan was less clear but indicated his party would undertake a ‘short review’ of the electricity market to set out next steps in ‘market evolution’.
“WA Labor is committed to maximising the opportunity for renewable energy in the WA electricity market while maintaining a mix of energy sources,” he said.
“There needs to be a short review of the electricity market to set out the next steps in market evolution. This review would not be intended to canvass old ground, but rather set out a path to get the best out of the market that has been created.”
Mr McGowan also indicated no new uranium mines would be approved, but those under construction or granted State approval could continue.
“AREEA had a positive working relationship with the Barnett Western Australian Government and we intend to continue this engaging with the new McGowan state government,” Tara Diamond, director of industry services, said.
“In particular, we will seek urgent engagement opportunities with the new premier and mines minister to ensure the government’s policies support a vibrant and growing Western Australian resources sector.”
See AREEA’s analysis of key policy positions of the new Western Australian Government (click on thumbnail right).
WA loses mantle as top destination for mining investment
The new McGowan Labor Government will have an immediate challenge on its hands to restore the global reputation of the state’s mining sector, after Western Australia lost its mantle as the world’s most attractive jurisdiction for mining investment.
According to the Fraser Institute Annual Survey of Mining Companies 2016, Western Australia is now the third most attractive place in the world to invest in mining and resources project.
While still a significant position, the state’s fall from the top should attract the attention from the new government.
Canadian provinces Saskatchewan and Manitoba ranked first and second in the report, which surveys resource executives across 104 jurisdictions.
Although Canada has taken the top two positions, Australia continues to surpass both it and the United States when both policy and mineral potential are taken into consideration.
Queensland was rated 10th, South Australia 13th, Northern Territory 20th, Tasmania 56th, Victoria 57th, and New South Wales 62nd.
The report describes Australia’s ‘can-do attitude towards exploration and mining’ as being a contributing factor in the region’s continuing mining success.
The survey results are also used to rate jurisdictions on a ‘Policy Perception Index’ (PPI), which acts as a ‘report card’ to governments surrounding the attractiveness of their mining policies.
These include environmental and labour regulations, regulatory duplication, taxation, political stability, and labour and skills availability.
