Tasmania Shadow Minister for Mining Adam Brooks

Government Must Rule Out Destroying Mining Industry

Victor P Taffa

Resource Minister Bryan Green has again failed to rule-out locking up the Tarkine and effectively destroying the State’s Mining Industry, Shadow Minister for Mining Adam Brooks said today.

“When questioned in State Parliament today, the best the Minister could offer was a vague plan to maybe ‘look at the projects’ – a classic Labor move, a plan to maybe take action, but more likely just hot air.” Mr. Brooks said.

“The locking-up of the Tarkine would undoubtedly kill off vital new mining projects such as the proposed Shree Minerals Project, a project that would create dozens of desperately needed jobs in the North-West.”

“But instead, all Mr. Green is interested in is locking-up fundamental mineral projects and watch as development is killed off and the north-west economy continues to suffer.” Mr. Brooks said.

“At a time when the Tasmanian economy is flat-lining and desperately needs investment, the best that Labor and the Greens can do it threaten to sack thousands of public sector employees and shut down the Mining Industry.”

“A single heritage listing that would lock up the Tarkine is not a responsible or sustainable solution for such a diverse area.” Mr. Brooks said.

“The Tasmanian Liberals are fully committed to developing the mining industry and opportunities in Tasmania to create investment, jobs and development, while maintaining strict environmental and safety controls.”

“Mr. Green must immediately and categorically rule out locking up the Tarkine and lobby his Federal counterparts to ensure that a heritage listing does not destroy this vital industry.” Mr. Brooks said.

South Australia Shadow Minister for Mineral Resources Mitch Williams

Mining Slumps Under Labor

Victor P Taffa

Investment in the South Australian Mining Industry has collapsed with spending over the year to September 2010 down a staggering 45 %.

According to the South Australian Centre for Economic Studies (SACES) December 2010 Economic Briefing, released today:

“Business investment spending in South Australia has weakened over the last year and was at its lowest level for several years.  The primary cause for this would appear to be a sharp reduction in investment by the mining sector… the outlook is uncertain.”

Mitch Williams, Shadow Minister for Mineral Resources said that under the Rann Labor Government investors had lost confidence about the future of the Mining Sector in South Australia.

“Under the Rann Labor Government there has been no South Australian ‘mining boom’ just more spin and rhetoric from the Premier.” Mr. Williams said.

“The Premier is asking South Australians to trust that he can deliver a Mining Boom but he has presided over a steady decrease in investment.”

“While the Premier continues with his rhetoric and spin mining companies are voting with their feet by investing in States where Governments have invested in infrastructure to support the Mining Sector.” Mr. Williams said.

“The most important issue for mining development in SA is the lack of a deep sea export port with a bulk loading facility.” Mr. Williams said.

The SACES Economic Briefing also revealed;

• Over the last 10 years SA has lagged National Economic Growth, growing at an average of 2.8% per year compared to national average of 3.1%.

•  SA’s spending growth has “slowed significantly through 2010”.  Business Investment is the “weakest component” of spending at present.

• South Australian Business Investment Spending was at its lowest level since 2004-05.

• South Australian Newspaper Job Advertisements fell 27% through the year to November.

Queensland Nationals Senator Ron Boswell

Rudd’s ‘Super Tax’ on mines a clear threat to jobs

Victor P Taffa

Queensland Nationals Senator Ron Boswell said today that comments by Wesfarmers Managing Director Richard Goyder prove that Kevin Rudd’s big new tax on mines is a threat to jobs.

Mr. Goyder told a breakfast audience in Brisbane yesterday that the company’s $268 Million upgrade of the open-cut Curragh coal mine near Emerald in central Queensland might not have proceeded if the investment decision had to take into account the new tax.

Prime Minister Kevin Rudd this week announced a 40% tax on the profits of miners to help fund his big spending.

The tax has led to a chorus of warnings from miners that it could push investment, and jobs, offshore.

Mr. Goyder said the decision to invest in Curragh was made based on then current commodity price forecasts, and the then existing taxation regime. The investment might not have proceeded if the tax regime had included Mr. Rudd’s new impost.

“This is a clear indication that this big new tax could limit the expansion of existing mines and cause the cancellation of new projects.” Senator Boswell said.

“It also puts a new perspective on the bid by Mr. Rudd to appear to be a Robin Hood, through his declaration that the tax will hit foreign owned companies who send their profits overseas.”

“Wesfarmers is 80% Australian owned and over 90% of its annual profits go to its shareholders, most of whom are individual Australians or Australian institutions.”

Senator Boswell said that, in any event, the main point about mines was not whether they were Australian owned or not, but whether they generated jobs and flow-on economic activity in Australia.”

“It is obvious that a healthy resources sector underpins a healthy national economy, and any move that curtails the resources sector will have big flow-on effects.” Senator Boswell said.

“Curragh is going ahead, but what about other expansions, and new mines?”

Queensland Opposition Leader John-Paul Langbroek

Bligh challenged to release economic modelling of Rudd Labor ‘super mining tax’

Victor P Taffa

Queensland Premier Anna Bligh has been challenged to release State Treasury economic modelling of the impact of the Rudd Labor ‘super mining tax’ on Queensland with the LNP warning the new mega tax would cost jobs and whittle away the superannuation funds of Queenslanders.

 Opposition and LNP Leader John-Paul Langbroek, said the super tax-grab would ‘snuff out Queensland’s mining boom’ and Queenslanders had a right to see all the economic modelling, including any to be provided to Cabinet.

 “There are 39,900 mining jobs at risk here. The response from Queenslanders should be to put Rudd’s and Bligh’s job at risk if the tax isn’t dropped.” Mr Langbroek said.

 Mr Langbroek said the new mining tax, coupled with Labor’s plans to introduce death duties and more land taxes, was all about paying off the economic incompetence of not just Bligh and Labor but also New South Wales Labor.

 “Queenslanders are heartily sick and tired of Labor Governments claiming that everything is fully costed and then finding out nothing was costed and that all the cash reserves are spent. We saw the economic lies told by Ms Bligh that have led to Labor’s fire-sale of our assets and now we see the lies from Rudd and Labor.”

 Mr Langbroek said on Saturday night Queenslanders went to bed knowing there were 125 Australian taxes; but awoke with 126 taxes.

 “Bligh and Rudd once said jobs were in Labor’s DNA. Now the truth is out. Taxes are in Labor’s DNA. And jobs will be lost.” Mr. Langbroek said.

 “Anna Bligh needs to release all the economic modelling from her own Treasury officials on the full impact of Labor’s new tax on mining jobs. This modelling is not the private property of Labor, it belongs to Queenslanders.” Mr. Langbroek said.

 “She needs to publically release this well before the Federal election so that Queenslanders can judge for themselves what the impact will be. This is a real test for Anna Bligh to show where her loyalties lie …will she stand up for Queensland or will she side with Kevin Rudd in taxing the jobs and the life out of regional Queensland.” Mr. Langbroek said.

 Mr Langbroek said tens of thousands of jobs were at risk across the regions.  “And not just regional jobs … jobs everywhere in service and heavy engineering and transport will be lost.”

 Mr Langbroek said every Australian with superannuation should be very concerned following the dramatic plunge in mining and resource stocks.

 “I feel very sorry for anyone looking to retire and access superannuation savings in the foreseeable future …Kevin Rudd and Wayne Swan and their socialist ideologues have already wiped $9 Billion from mining stock values and consequently wiped value from the superannuation accounts of millions of Australian workers.”

 “This has nothing to do with tax reform …this is all about a greedy socialist grab for cash by a Federal government whose spending is out of control.” Mr. Langbroek said.

Queenslanders employed in Mining Industry by Region

As at February 2010.

Source: OESR, Queensland Employment Projections by Industry and Statistical Division; 2009-10 to 2010-11;  Table 6.1

Western Australia Minister for Mines and Petroleum Norman Moore

Exploration incentive scheme attracts 90 applicants

Victor P Taffa

The Western Australia State Government has received 90 applications, seeking more than $9.3 Million in co-funding, as part of its $80 Million Exploration Incentive Scheme (EIS).

Mines and Petroleum Minister Norman Moore said 67 companies or prospectors had applied for funding in the second round of the Government’s co-funded exploration drilling program.

The Government has budgeted $5 Million for the drilling program in 2010-11.

“The co-funded drilling program is one of six EIS programs available under the Liberal-National Government’s Royalties for Regions scheme and encourages drilling in under-explored or Greenfield areas.” Mr Moore said.

“It is designed to develop the long term sustainability of Western Australia’s resource industry.”

“The locations of the proposed projects in this latest round reflect the requirement for targeted exploration in under-explored areas.”

“Many of the projects are in remote Greenfield areas and several of them, which were co-funded in the first round of drilling funding, have already returned good results.”

“These include Beadell’s gold results in the West Musgrave and Encounter Resources’ high-grade zinc mineralisation in the Pilbara.”

Most of the applicants were from the mineral exploration sector, although some were from geothermal and petroleum explorers.

Gold was the preferred commodity in 42 of the applications, followed by base metals in 33 applications.  Other commodities sought include:

• Nickel (15 applications),
• Iron (13),
• Uranium (9),
• Heavy mineral sands and coal.

The successful applicants will be announced in June.

Western Australia Minister for Mines and Petroleum Norman Moore

State moves ahead with reform to improve mining safety

Victor P Taffa

Safety in Western Australia’s resources sector took a significant step forward today with the publication of the Mines Safety and Inspection Levy Regulations 2010 in the Government Gazette.

Mines and Petroleum Minister Norman Moore said the new regulations were part of a reform process he had begun in November 2009 and reflected the importance the State Government placed on worker safety.

“The Government’s Reform and Development at Resources Safety (RADARS) strategy is an initiative which addresses how the Department of Mines and Petroleum’s (DMP) resources safety division will work with the resources industry.” Mr Moore said.

“It is designed to reduce serious accidents and save lives across the three sectors it administers – mining, petroleum and dangerous goods.”

The Minister said it was vital employees, businesses and Government worked together to effect the necessary cultural change which would reduce workplace injuries and deaths.

“Consultation, communication and participation are paramount to making effective and permanent change.” the Minister said.

“Under the RADARS strategy, the emphasis will be on expanding the role of risk management rather than relying on detailed prescription for resources safety regulation.”

“The risk-based approach puts the onus on operators to demonstrate they understand the hazards and risks of their workplaces and have implemented the necessary control measures.” Mr. Moore said.

“This will help ensure the specific safety needs of individual operations are addressed, rather than trying to use a one size fits all approach.”

Mr Moore said the mining sector would be the priority in the phased implementation of RADARS.

“There have been a number of reviews into mining safety in WA, including the Kenner Review in 2009, which have noted issues such as the State’s low inspector to employee ratio.” the Minister said.

“A Ministerial Advisory Panel including industry and unions, as well as key departmental staff, will provide advice as the new regime is implemented.”

“WA’s mining industry is Australia’s biggest mining sector and one of the largest in the world.”

“It is vital the mining inspectorate reflects the size and complexity of WA’s mining industry and as such the Government has approved the creation of up to 26 additional mines inspector positions.” Mr. Moore said.

In order to fund these positions and adequately resource them with support staff positions and other initiatives within the DMP, the Government has introduced the Mines Safety Levy.

The Minister said despite some criticism from industry, the levy was important to ensure the Government had the resources to work with industry to lift safety standards.

“The growth in WA’s mining industry has stretched DMP’s resources to the limit.” the Minister said.

“It is the State’s position that enhanced safety services should be funded by the mining industry as the direct recipient of those services.”

The new mines safety levy regulations sets out details such as how the levy will be charged to industry, which is liable to pay, how it will be assessed and the payment process.

The mines safety levy will raise about $8 Million in 2009-10 and about $18 Million in 2010-11 for safety regulation of the mining industry.

It is expected that about $35 Million will be raised in 2011-12 for safety regulation across all the industry sectors – including onshore oil and gas, pipelines, mining exploration, dangerous goods, major hazard facilities, explosives and counter-terrorism measures.

South Australia Opposition Leader Isobel Redmond

Labor’s Mining Spin

Victor P Taffa

South Australia Premier Mike Rann has once again been caught out misleading the South Australian public over the true position of the mining industry in this state according to Opposition Leader Isobel Redmond.

In the last twelve months full time jobs in the mining industry in this state have fallen by more than 3,000 to 7,200 from a peak of 10,400 in 2008 (source ABS)

South Australia is now ranked only ahead of Tasmania in terms of mining jobs.

“The industry needs help, so the Premier has been forced to find $18 Million for a rescue package to “drive more jobs and growth”. This government has failed for 8 years to support the mining sector and now in the shadow of an election they admit failure and throw money at the problem.” Ms. Redmond said.

The Rann government needs to come clean on the future of mining in this state not hoodwink the taxpayers with more spin.

A Redmond Liberal government will fully support the mining industry in this state and reveal the real truth to the South Australian people. 

Under the provisions of the relevant Electoral Act responsibility for all election comment is assumed by Editor Victor P Taffa. The Registered office of The Southern Thunderer is at 4/69a Darvall Road, West Ryde NSW 2114.