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len FRetwell Publisher / Managing Editor Digging & Drilling Australasia

Australian media seem to be telling anyone who will watch, read or listen that ‘the sky is falling’ in the Australian resources sector, anything to improve ratings would be my guess.

Australia’s economy is currently undergoing some substantial transitions but it is important to remember that we have one of the healthiest economies in the world. A recent Bureau of Resources and Energy Economics (BREE) report points to the transition underway in our resources sector, from the investment phase leading to the production and export phase. It is important to remember that the challenges presented to Australia by these transitions are tackled from an irrefutable position of strength.

These transitions are challenging, but Australia is well equipped to deal with them because of our nation’s fundamental strength. We’ve experienced the largest resource investment boom in our history and we have weathered the biggest global economic crisis in 70-years with a growing economy. I am confident Australia will deal with these shifts successfully.

The BREE report shows that some early stage projects were significantly impacted by the sharp fall in commodity prices late last year, the value of Australia’s investments remain close to record high levels at $268 billion. The level of resource investment is expected to remain historically high for some time and commodity export volumes should grow as the production phase grows. The BREE report also highlighted, the value of completed projects over the past six months is the second highest ever recorded at $15.3 billion and this will contribute to greater export capacity in the near future. Interestingly, world trade has now achieved pre-GFC levels and Australia has more free trade partners than ever before.

It is Australian Federal Election time this September and the Mining Tax has generated major debate from both sides of politics and from the resource sector. Clearly, the Mining Tax has not had any real effect, apart from undermining confidence in the sector. Surely, the mining companies require lower taxes to encourage the considerable investments needed to generate mining income.

I offered both the Australian Prime Minister and the Leader of the Opposition equal space in this edition for a message to the energy and resource sectors. The Prime Minister declined my offer but you will find a message from the Hon Tony Abbott MHR on page-5.

We are always looking for interesting energy and resource sector news and innovation content and I invite industry members to contact me direct with any news that may be of interest to our readers. I hope you enjoy reading this edition of D&D Australasia and I look forward to your feedback.

Best Regards

Len Fretwell Publisher / Managing Editor

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digging & drilling Australasia welcomes comments and suggestions, as well as information about errors that call for corrections. we are committed to presenting information fairly and accurately.

disclaimer: reasonable care is taken to ensure that digging & drilling magazine articles and other information are up-to-date and accurate as possible, as at the time of publication, but no responsibility can be taken for any errors or omissions contained herein. The opinions expressed are those of the authors and do not necessarily reflect the views of digging & drilling Magazine. The publisher, editors, contributors and related parties shall have no responsibility for any action or omission by any other contributor, consultant, editor or related party.

The Hon Tony Abbott MHR Leader of the Opposition Federal Member for Warringah

Message from the Leader of the Opposition, the Hon Tony Abbott MHR

MINING IN AUSTRALIA

Over the last decade, the Australian resources industry has undergone a great expansion. However, the sector still faces significant challenges – many of which, unfortunately, have been imposed on it by the Labor Government.

If elected, a Coalition government will abolish the mining tax and the carbon tax to help reenergise the entire mining industry and to help restore Australia’s international reputation as a safe and reliable place to invest.

By lowering taxes and reducing Australia’s sovereign risk profile, we will declare to the world that Australia is ‘open for business’ again and that will lift confidence and investment in our industries.

The Coalition will also offer state and territory governments the ability to act as a one-stop-shop for environmental assessments and approvals. We will maintain environmental standards while simplifying the application of the Federal Environmental Act, and all associated bureaucratic arrangements. This will lead to increased transparency, accountability and importantly, timely decision making.

The Australian people will benefit significantly more from a bigger and stronger mining industry that pays more taxes and invests in more mining projects in Australia rather than overseas.

The Coalition will deliver a more positive environment for mining in Australia and for the hundreds of communities and tens of thousands of employees dependent on the industry.

Yours sincerely

TONY ABBOTT

25 July 2013