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There can be few times when the

West Australian resources sector

has headed into a new year with

such uncertainty.

ronic perhaps, that the uncertainty has little to do with prices. Af- rules around isolation for positive cases and close contacts. Other
Iter an initial fall following the onset of the pandemic, commodity states have already redrawn their definitions in the face of absen-
prices across the board rebounded strongly throughout 2020 and tees. How will McGowan, who has shown as much caution as he
into 2021. has resolve during the pandemic, adjust to this challenge?
The problem is that while the iron ore majors, gold miners and Industry itself is already putting plans in place. Speaking on the
base and battery metals producers are enjoying record prices, company’s quarterly results call, Northern Star managing director
margins are flagging. Stuart Tonkin said the company’s harrowing experience at Pogo
The COVID-19 pandemic has been a drag on operating costs, – where there was a major outbreak of the virus – had given it a
as evidenced by the likes of Rio Tinto Ltd, BHP Ltd and Northern head-start in planning around WA operations.
Star Resources Ltd in their half-year and quarterly results in Janu- “Overall, it is still difficult to establish what the actual impacts
ary. could be. All the companies [in WA] are very well prepared and
Rio Tinto and BHP specifically referenced the pandemic as hav- particularly given our experience at Pogo in Alaska we’ve imple-
ing an impact on production while Northern Star saw AISC reach mented a lot of the same things to mitigate the amount of contacts
$1,631/oz in the December quarter with the COVID-ravaged Pogo our teams are having. We have a lot of contingencies and diversi-
operation in Alaska producing at $US1,735/oz. fication in where operations, activity and skills fit.”
That these companies are producing anywhere near guidance Speaking to The West Australian, Chamber of Minerals & En-
at all is testament to their own planning and the cooperation with ergy WA (CMEWA) chief executive Paul Everingham said the early
government. release of guidelines was vital.
It has been a fine balancing act performed by the WA Govern- “The sooner the better because otherwise uncertainty just leads
ment and the resources sector. While industry has quietly lament- to questions,” he said.
ed the restrictions on interstate and international workers, it has not Everingham pointed to Queensland and South Australian mod-
made a big issue of it. Premier Mark McGowan granted the indus- els where close contact isolation had been reduced to seven and
try “essential” status early on, a move which provided a lifeline to 10 days respectively. There is also a changing of the definition of
state and federal coffers when so many other sectors – particularly close contact at the national level.
education, tourism and hospitality – have been in strife. “And there would likely be close contacts which ideally would
Although it has never been stated publicly, the major miners be deemed close contacts under the National Cabinet definition,
must have run their own calculations and models and decided a which is four hours of close contact with the positive case,” he said.
labour squeeze was preferable to community spread of COVID-19. One group of miners and explorers who will be eagerly awaiting
That decision has been vindicated in recent weeks as WA the border changes are Australia’s cohort of overseas miners.
watches vast swathes of the rest of Australia’s economy close due The sacrifices many of these workers have made over the last
to virus-induced absences. two years is little short of remarkable. I have been told of workers
This splendid isolation cannot last forever but as Paydirt went staying on site for up to nine months without coming home, only
to print McGowan announced that the hard border would stay up to be told at the last moment their flights have been cancelled and
past February 5. they will have to wait another four weeks to see family.
While Omicron and the parlous state of the WA hospital system Even senior executives have endured long bouts of quarantine.
were cited as the main reasons, there is little doubt the resources I have spoken to a dozen managing directors who have submitted
sector will be breathing a sigh of relief because there were far too themselves to multiple stints in hotel quarantine after needing to
many unanswered questions about an open WA. travel to West Africa, Latin America and Asia to assess project
What will the labour situation look like with no travel restrictions? development and operations.
Will the gain of accessing workers from interstate and overseas The mental strain this must put on individuals and families is im-
be enough to soften the blow created by COVID-19 sick leave? possible to quantify for those who haven’t suffered it, so with bor-
Also, after two years of being barred from leaving, how many ex- ders seemingly ready to come down, they will hopefully be granted
pats will decide it is time to return to their east coast or overseas reprieve and get on with the business of building projects and com-
hometowns and families? panies which create value for shareholders, host communities and
Answers to these questions have now been put back but they all stakeholders.
will return.
Much will depend on how the State Government structures the dominic@paydirt.com.au @DominicPiper

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