Manufacturers have warned an ongoing gas crunch could force factories to the brink, as big users on the east coast scramble to find new supplies to power their industrial operations. The federal government late last year legislated a cap on uncontracted gas at $12 a gigajoule, and said it would establish a mandatory code of conduct to force gas to be sold at “a reasonable price”. The intervention has caused a spate of proposed new gas developments to stall, and leading mining supplier Orica said Australia was not competitive with other jurisdictions. “Our gas pricing in this country is capped at $12. If I manufacture in Canada, I pay less than $C2 per million British thermal unit,” Orica chief executive Sanjeev Gandhi said. “So even when you consider imports and supply chain costs, if I bring the product into Australia, it is still cheaper than the high gas price that I have to absorb. So already today, I have this disparity.”
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Atlas Iron | Congratulations to our Executive Chairman, Mrs Gina Rinehart AO, on being announced as the 2023 Western Australian of the Year.
Recognised for her outstanding contribution to the state and national economy, Mrs Rinehart was also awarded the 2023 Business Award. A passionate philanthropist, Mrs Rinehart supports various medical, educational, sporting, health and community organisations, including the life-changing Hanrine Futures Scholarships, which ensures disadvantaged and vulnerable Indigenous children in the Pilbara receive an education and a guaranteed job.
Read moreRegions play to resources’ strengths
WHEN Prime Minister Anthony Albanese took his full ministry to Port Hedland in February, the focus was on the importance of the resources sector. It was an opportunity for Mr Albanese and his east coast colleagues to see first-hand the enormous scale of iron ore export operations from the port. Port Hedland Mayor Peter Carter had a more complex agenda. “We have always maintained that Port Hedland is an economic powerhouse for our nation, but we also face numerous challenges as we try to prosper as a community,” Mr Carter said. Mr Carter welcomed the prime minister’s announcement that $565 million would be invested into Pilbara ports but said this needed to be supported by investment in social infrastructure. “The state and nation need a thriving port to drive our economy, but the port also needs a thriving Hedland to succeed,” Mr Carter said.
Read moreOpinion | Autonomous cities are the next big thing for SEZs
Farsighted government leaders see the opportunity for more than just billions of dollars’ worth of immediate foreign direct investment. They see the importance of attracting young talent, such as creators, entrepreneurs and artists, who are seeking communities they are inspired by and choose to live in. These are the people who will shape and move the world of tomorrow. They are the ones creating economic and social opportunities. Judging by the amount of excitement, and by the projects currently under early development, the time is right. Autonomous cities are the next big thing. They are the next generation of SEZs, and so much more.
Read morePlucking the hissing goose
Australia must stop demonising mining | Gina Rinehart | 2023.
Read moreMrs Gina Rinehart AO | Speech to Queensland Resources Council Lunch
16 May 2023.
Read moreToo much fiscal intervention will make miners wary
Resources companies aren’t doing Australia a favour by investing in the country, they’re doing it because there’s money to be made, even with an increasing government take. But the danger for governments with a propensity to fiddle with industry tax regimes is overestimating their willingness to pay. It’s easily overlooked when company bosses warn that changes to Australia’s fiscal regime will force investment capital offshore and make other jurisdictions more attractive that the country still has a lot going for it.
Read moreWA toppled as world’s most attractive mining province
Western Australia has been toppled as the world’s top-rated mining investment destination but remains Australia’s most attractive jurisdiction. The Institute ranks the attractiveness of the world’s mining jurisdictions by measuring their practices, mineral potential and regulatory and fiscal policies based on a poll sent to nearly 2000 people in the mining industry. WA’s drop was blamed on a drop in its policy score, which shunted it from 4th to 10th last year, as miners “expressed increased concern over its taxation regime, uncertainty regarding environmental regulations and regulatory duplication and inconsistencies”, the Fraser Institute report said.
Read more‘TAX ON WA TO FUND THE EAST’
One of Australia’s leading energy analysts says the Federal Government’s changes to the Petroleum Resource Rent Tax means the nation has “lost its competitive advantage” in the lucrative LNG sector.Mr Kavonic warned the changes could lead to the gas industry — already reconsidering Australian investment after east coast policy intervention — thinking twice about the west coast now, too.
Read moreLabor’s tax take to hit 15-year high
The federal government’s tax take is poised to hit its highest level in 15 years thanks to soaring resource sector profits and inflation pushing workers into higher tax brackets. Veteran budget watcher Chris Richardson expects the May 9 budget to reveal tax revenue as a share of the economy will reach 23.8 per cent next financial year, which will be the highest level of collections since 2008.
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