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ARTICLE · 05 FEBRUARY 2013

Solving Australia's mining productivity problem

Corrs Chambers Westgarth
Corrs Chambers Westgarth
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Corrs Chambers Westgarth

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Warning bells about the productivity of the mining industry have been ringing, yet there's no serious attempt at reform.

AustraliaEnergy and Natural Resources

Warning bells about the productivity of Australia's mining industry have long been ringing, yet there's been no serious attempt at reform.

The Productivity Commission is taking a small step forward with an inquiry into the non-financial barriers to resource exploration in this country. But the scope is gravely flawed. Inexplicably, the Commission is excluding financial barriers in its investigation so it will only be looking at one side of the problem (and possibly the smaller side at that).

The Commission must expand its investigation to take account of the financial factors that influence investment decisions – costs like the Mineral Resources Rent Tax and Carbon Tax and a myriad of financial incentives, fees, charges and royalties. These are what make or break investment in resources projects and there is clear evidence these financial factors are undermining investor confidence in Australia.

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