MARKETS

Hogsback and coal's few friends in government

FORMER Australian prime minister Tony Abbott once famously said: "Coal is good for humanity" and ...

Lou Caruana

This lead Hogsback to wonder whether supporting coal is a kiss of death for politicians in this post Paris Summit age, where renewables are the latest buzz word.

The latest Federal budget was released this week without the word coal being uttered once by treasurer Scott Morrison, despite it being the country’s second biggest export and despite its high contribution to government revenues.

Mining generally was also downplayed.

Mining exports are forecast to grow by 7% in 2016-17 and 7% in 7.5% in 2017-18, faster than the growth in total exports over the same period.

Over the next four years, Australia’s single largest export earner, iron ore, is forecast to grow by 16%.

According to the Minerals Council of Australia, the Budget does highlight the substantial gains in mining productivity over recent years.

“The Budget projects a recovery in commodity prices over the next year, the first increase in the terms of trade in recent years,” MCA CEO Brendan Pearson said.

“The minerals sector welcomes the Government’s commitment to a $100.5 million initiative over four years to produce mineral, petroleum and groundwater resource data in targeted areas in northern Australia and South Australia to help identify new greenfield exploration sites.

“This is a critical investment to identify the next sources of Australia’s minerals wealth.”

AMEC national policy manager Graham Short says that new mines will create thousands of jobs and generate significant economic and social dividends for the nation and local communities.

The Hog agrees that the Government should also consider its role in unlocking resource projects that are “stranded” due to the lack of cost effective infrastructure approvals delays or access to finance.

“These need to be facilitated or fast tracked where possible,” Short said.

“The Government`s $50 billion infrastructure development plan to 2019/20 is a great investment for growth and jobs but it mainly focusses on capital cities rather than critical economic producing regional infrastructure, which could release stranded mineral projects and generate revenue streams for the nation, and in regional communities.”

Once again politicians have their eyes firmly focused on the marginal seats in the big cities. Better to fix up the clogged freeways in Sydney or Brisbane than invest in infrastructure that makes Australian coal mining industry globally competitive.

It seems that things are not any different in the US when it comes to the political value of coal mining.

The Hog read with interest that the now confirmed Republican presidential candidate in the US election Donald Trump has spoken up in favour of the West Virginian coal miners.

“We're going to bring back our jobs and we're going to keep our jobs. Let me tell you, the miners in Pennsylvania and West Virginia are going to start to work again. You're going to be proud again to be miners,” he said.

This is in stark contrast to the Democratic contender Hillary Clinton, who has promised to give out-of-work coal miners jobs making solar panels.

“The Don” has stunned most of the media and political pundits by making it this far. But if Tony Abbott’s experience is any guide, the US may have its first female president after all.

TOPICS:

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Monthly Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Monthly Intelligence team.

editions

ESG Mining Company Index: Benchmarking the Future of Sustainable Mining

The ESG Mining Company Index report provides an in-depth evaluation of ESG performance of 61 of the world's largest mining companies. Using a robust framework, it assesses each company across 9 meticulously weighted indicators within 6 essential pillars.

editions

Mining Magazine Intelligence Exploration Report 2024 (feat. Opaxe data)

A comprehensive review of exploration trends and technologies, highlighting the best intercepts and discoveries and the latest initial resource estimates.

editions

Mining Magazine Intelligence Future Fleets Report 2024

The report paints a picture of the equipment landscape and includes detailed profiles of mines that are employing these fleets

editions

Mining Magazine Intelligence Digitalisation Report 2023

An in-depth review of operations that use digitalisation technology to drive improvements across all areas of mining production