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OPERATIONAL REVIEW
DIGGeRs & DeALeRs PReVIeW MACA.NET.AU

gaged with Federal Government about the
skilled migration list.
“We look forward to a return to normal
levels of migration but there will be prob-
lems with visa being issued as it will take
a while for Federal bureaucracy to get
through it.”
At a local level, Johnston said work was
continuing to train West Australians.
“We are upskilling WA people,” he said.
“We have a big effort in investing in skills,
investing in schools through our STEM
strategy, and building a complete pipeline
of STEM skills.”
Johnston with WA Minister for State Development Roger Cook at the opening of Tianqi Lithium/ As well as his own Government, John-
IGO’s Kwinana lithium hydroxide facility ston called on the Commonwealth and in-
dustry to show leadership in skills.
resources, which it was previously because saying how pleased they were that industry “We hope the new Commonwealth Gov-
the previous government was Queensland- and Government worked together. There ernment has better input in tertiary edu-
focused, it was focused on coal. Coal is not are always things you could do differently cation than the last Government and it is
the whole mining industry and given 60% but in the end the strategy worked and that pleasing to see companies accepting the
of mining is in WA, it would be nice if the is credit to industry management, work- challenge of training unskilled workers,” he
60% of the effort going in to support coal force and government.” said.
went into supporting other sectors.” The skills crisis has eased slightly since Labour shortages feed directly into the
Johnston’s defence of the WA industry borders opened in March, but the industry other major concern for industry in 2022;
is in keeping with his Government’s recent is still suffering from a severe talent short- cost inflation.
approach on the national stage. WA has always been consid-
Premier Mark McGowan de- ered a high-cost jurisdiction, but
fended the sector’s right to keep Johnston is comfortable that rep-
operating during the early months utation won’t preclude new invest-
of the COVID-19 pandemic and ment, particularly in the emerging
was richly rewarded by consistent battery minerals sector.
support from major companies for “A lot of the cost pressures are
his rolling lockdowns. imported,” he said. “It is a global
“WA’s success during COVID challenge but what is our re-
was based on keeping the in- sponse? The challenge of zero
dustry going,” he said. “The Pre- COVID policies in China, shipping
mier made the decision to keep challenges, etc. There are a lot of
industry going. People on the complex global issues.
East Coast lobbied against that in “There is no real concern
2020, everyone in industry knew [about WA’s international com-
we had to stop the disease.” petitiveness] because we are not
The major drawback of competing with low-cost jurisdic-
McGowan’s tough border stance tions. Our peers in the battery
was a lack of available workers. processing industry are similar
Johnston expressed sympathy for Opening skilled migration will be crucial to getting boots on the jurisdictions. There is never going
the industry’s dilemma but said ground in WA’s exploration sector, according to Johnston to be a single source of battery
an open border policy would have materials and our strategy is to
had an even greater effect on absenteeism age. Johnston is aware of the problems be a recognised centre of supply of those
and productivity. faced by industry but said there was little materials [not dominate the market]. We
“I understand workforce complaints the Government could do to solve the issue are confident of filling that space and that
about labour issues, but our management at an interstate level. is demonstrated by the number of down-
of keeping COVID out when there was no “Prior to COVID there was not a high lev- stream investments we are seeing.
vaccine allowed industry to continue with- el of mobility between states, so it wasn’t “In the end our base case remains the
out community spread,” he said. “We’ve the state border that affected labour, it was same; stable power prices, a very strong
seen how difficult it has been in the last the international border, and we saw that regulatory environment, a stable invest-
few months, even with our high vaccina- around the country,” he said. ment environment and good ESG cre-
tion rates which have helped with our soft “The Premier has commented on skilled dentials, and don’t move waste across the
landing. migration, and we think long-term skilled world.”
“I’ve had plenty of people from industry migration is the right pathway and have en- – Dominic Piper

Page 36 JULY 2022 aUSTRaLIa’S PaYDIRT