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an MCA statement read. “Victoria is ready be done as domestic and international com- py to move the financial goalposts without
to be a major supplier of mineral sands and petitors continue to outperform our State,” a consultation.”
rare earths with a number of projects in the Council announcement read.
pipeline across the State. The State’s resources sector has made Northern Territory
“The funding for critical mineral develop- some strides in recent years, climbing the
ment is a great signal to the industry that Vic- Fraser Institute’s ranks of investment attrac- and Federal
toria is keen to support industry investment, tiveness from a score of 61.84 in 2016 to
but an expanded co-funded programme to 72.64 in 2020 – ultimately ranking 27th out
keep pace with incentives in other states is of 77 destinations worldwide.
required in coming years.” New South Wales Minerals Council chief
The MCA reported Victorian mining pro- executive Stephen Galilee more recently
jects contributed $510 million to the State cited a poor regulatory framework as the
economy in FY2021 while arguing that fur- State’s major shortcomings in the resources
ther investments would create more jobs sector.
and foster regional communities. “More progress is needed to achieve this
Victoria’s latest budget also outlined in- ambition as problems within our jurisdic-
coming taxes on mining businesses as MCA tion remain, especially within complex state
estimated $140 million in royalties were ex- regulatory and assessment systems,” he
pected in the 2022-23 period. The State’s said. “Our mining industry competes with
tax regime was ranked last out of its coun- other states and international jurisdictions
terparts in the recent Fraser Institute study. for investment. Global perceptions of a
MCA also criticised Victoria’s royalty sys- poor policy environment here in New South Madeleine King
tem on gold production, asking for change. Wales will mean billions in investment and The Northern Territory has found it-
“Reform to Victoria’s flawed gold royalty, thousands of jobs will instead go interstate self a unique bond in the new Albanese
imposed in 2020, is required to ensure that or overseas.” Government’s cabinet with Minister
the uncompetitive royalty does not result in New South Wales is still predominantly a for Northern Australia Madeleine King
mines closing in times of lower gold prices,” coal mining state but BHP Ltd did recently also serving as the new Minister for Re-
an MCA statement said. announce plans to close the State’s largest sources.
coal mine, Mt Arthur, by 2030. BHP report- West Australian-born King has quickly
New South Wales edly failed to find a suitable buyer for the jutted her elbows out as Minister, defending
project, which employs 2,000 people, after the resources sector from its “demonising”
New South Wales was one of several a two-year search. Rehabilitation of the site’s detractors.
states facing potential blackouts in land can take up to 15 years. King has also had to fend off criticism for
mid-June. current reliance on fossil fuels while also
The Australian Energy Market Operator Queensland pushing a view to harness critical minerals
took the unprecedented move of suspending such as rare earths to power a low-emission
the entire country’s wholesale electricity mar- At the time of print, The Queensland Australia.
ket, which stopped spot prices, to sidestep Government was also set to unveil its “I get there hasn’t been enough action so
potential blackouts across the east coast. Up 2022-23 Budget on June 21. far,” she conceded. “But the way we’re going
to 80% of New South Wales’ electricity was Earlier in June, the Queensland Resourc- to keep people warm and keep having a pro-
estimated to be coal-powered in 2019. es Council (QRC) criticised the Palaszczuk ductive society as well as getting to that goal
Australia’s reliance on fossil fuels was Government’s plans to increase royalty tax- will involve every company and every worker
recently criticised by new Federal Energy es without industry consultation. in that energy mix to get there, not demonis-
Minister Chris Bowen, spruiking future in- “At the last election, the Palaszczuk Gov- ing some against the others or demonising
vestments in renewable energy that is largely ernment said there would be no new or in- the sector.
powered by critical minerals such as lithium, creased taxes, but Treasurer Cameron Dick “We will make clear the critical minerals
copper, nickel and rare earths. is now planning to impose higher royalty and the emerging resources sector of Aus-
In the meantime, New South Wales Treas- taxes on our sector without consulting the tralia is part of the global solution to get into
urer Matt Kean was anticipated to release the industry or the resources communities most net-zero emissions, and we should be really
State’s 2022-23 Budget on June 21. affected by this broken election promise,” proud of that and singing it from the rooftops.”
In the lead up to the budget reveal, Kean QRC chief executive Ian Macfarlane said. King’s appointment seems to have passed
emphasised an economic recovery from Macfarlane claimed Queensland’s larg- the pub test so far, particularly for her warmth
COVID-19 and flooding, with the latter to est export industry was the resources sector for future facing commodities.
command $2 billion in spending. and that regional jobs were potentially at risk “Minister King has held the resources port-
In February 2021, the New South Wales from the royalty increase. folio in opposition and understands the im-
Minerals Council said mining contributed “Projects may not go ahead or won’t be portance of our industry in creating jobs and
$14.9 billion to the State Government’s econ- expanded now because of the instability growth, but also the vital role in producing the
omy. and uncertainty created by the Queensland minerals needed for decarbonisation and a
Following the Fraser Institute’s Annual Min- Government changing its royalty tax regime clean energy transition,” AMEC’s Pearce
ing Survey, the Council lauded improvements almost overnight,” he said. said.
in the sector but called for more growth. “The Treasurer’s cavalier attitude to tax Critical minerals will be important following
“New South Wales has improved its rank- changes raises red flags for investors in all the Albanese’s new pledge of reducing car-
ing as an attractive jurisdiction for mining in- Queensland resource projects because it bon emissions by 43% by 2030 as part as
vestment, however, it’s clear more needs to signals the Queensland Government is hap- the Paris Agreement.

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