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Australian mining’s guide

to pandemic survival

hile the rest of the world cannot get and the future of the industry as a whole.
W out of 2020 quick enough, the Aus- This is why WA miners have taken their responsibilities so seriously
tralian mining sector will be reflecting on a and points to another key trend of the year – the increasingly sophisti-
year in which it has rarely had it so good. cated approach miners take to their position in Australian society.
The pandemic has obviously changed The Juukan Gorge Caves incident aside, Australian mining has grown
many things in the industry but since the its position as a leading ESG performer and ethical supplier of commodi-
threats of March and April when it ap- ties in 2020. It is a position which is important not only for recent devel-
peared the entire industry and its key customer markets may shut, miners opments but also longer-term trends around international relations and
and explorers have enjoyed a record year. trade and supply chain integrity.
As the global economic ructions brought on by COVID-19 threatened The end of President Trump will not mean the end of diplomatic and
to derail the industry, there would have been few brave enough to predict trade tensions; indeed China and others may feel emboldened with the
Western Australia’s FY2020 figures would show records for total exports loose cannon of the White House out of the way.
($173 billion), iron ore exports ($103 billion) and gold exports ($16 billion). It is a difficult situation for Australia whereby it is attempting to be a good
Everything which has occurred since July 1 would suggest that record international citizen and maintain the rules-based order by pulling its larg-
could be broken again for FY2021 as governments look to stimulate their est trading partners into line.
economies in a – hopefully vaccinated – world but geopolitical instability The Australian mining industry obviously relies heavily on ongoing
and economic uncertainty ensure gold trade with China and the WA Govern-
remains an important asset class. ment has been quick to make its feel-
There are several factors allowing this ings known.
to occur. At the beginning of the pan- “I don’t think it is a good idea to shout
demic financial markets were spooked “ There may be chaos and at your biggest customer,” WA Minister
about the potential impact it would have confusion at every turn for Mines and Petroleum Bill Johnston
on the Chinese economy. When Beijing said at Africa Down Under.
placed the entire country into what at the in 2020 but in 2021 and beyond, It is tantamount to a free hit for a
time seemed a harsh lockdown, com- Australian mining could provide State Government when it can give its
modity prices tumbled. thoughts on foreign policy without hav-
However, as the virus spread inter- safe harbour for a new era of ing to take any of the responsibility (a bit
nationally, the demand side shock was international trade. like the Prime Minister and his cajoling
replaced by supply side uncertainties, of states on hard borders).
particularly in key export markets such As ever in the world of diplomacy, the
as Latin America where coronavirus path forward for Australia is not clear
was quickly running out of control. and the balancing act is likely to domi-
At the same time, WA’s mining industry and State Government had nate the national agenda in 2021.
struck an accord over how to handle the pandemic. Speaking at Diggers The growing diplomatic tensions between China and the West do em-
& Dealers, WA Premier Mark McGowan said he felt sick when the list of phasise the growing concerns globally over supply chains. This problem
industries likely to close during the lockdown was distributed to the na- has been bubbling away for several years – really since China pulled the
tional cabinet. plug on rare earths exports in 2012 – but Western countries and compa-
“WA refused to close the WA resources industry not only for the em- nies are increasingly concerned about where and how they source key
ployment it sustains but it would create turmoil across Australia and the commodities.
global economy and the country would lose the revenue it would gener- Australian mining’s reputation on ESG and other matters means do-
ate to respond to the pandemic itself,” he says on page 84 of this edition. mestic and even overseas operators are in a good place.
“That is, to fund the hospitals, police and support services and the income As McGowan said at Diggers, WA is the most ethical producer of min-
it would provide to the Commonwealth Government. erals in the world – no slavery or child labour, good environmental and
“When I saw it was suggested we close resources, I said: ‘No, what we safety standards and thanks to the widespread adoption of renewables,
need to do is manage through this.’” one of the lowest carbon footprints.
McGowan has taken considerable criticism for his strict decisions over At Africa Down Under we saw that Australians in Africa can also bene-
borders during the pandemic but his Government’s willingness to show fit from the country’s ESG credentials. When the manufactures inevitably
adaptability during the early stages helped stave off any negative eco- go to Africa for supply of key commodities, they will want to do so with a
nomic impacts. trusted partner and who is more trusted than Australian miners?
The Government and industry worked together to set protocols to en- There may be chaos and confusion at every turn in 2020 but in 2021
sure the industry could continue to operate and move people around, and beyond, Australian mining could provide safe harbour for a new era
even when the intrastate borders were in place. of international trade.
The industry took its role very seriously. Talking to many executives,
they know if an outbreak was to occur in WA, particularly at one of their dominic@paydirt.com.au @DominicPiper
mine sites, it would have massive ramifications for the State, its economy

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