Australia’s Conservative Government Holds on Despite Polls

Australia’s Conservative Government Holds on Despite Polls

The Australian election campaign was filled with debates over the resources industry — from coal, gold and uranium to EV tech.

Last week, Australian Prime Minister Scott Morrison led his center-right Coalition government to a re-election victory in the Australian federal election.

It was an election punctuated by issues pertinent to the resources industry, from the future of coal in the Adani project in Queensland, to electric vehicles (EVs) and sales quotas to an aborted foray into the potential liberalization of attitudes towards nuclear energy.

Morrison is the fifth prime minister of Australia since 2013, and is the latest leader to come to power as a result of government infighting. With the Coalition lagging in opinion polls since the last election in July 2016, the re-election of his government over the center-left Labor party was immediately compared to US President Donald Trump’s victory against Hillary Clinton — including by Trump himself.

Peak body for the resources industry, the Minerals Council of Australia (MCA), was quick to congratulate the Coalition government on its re-election, saying that its economic policies mean that miners will be able to continue to develop resources in the country thanks to lower taxes.

“There is now a clear mandate for resources projects that have lawful approvals to proceed, such as the Adani coal mine in central Queensland and the Yeelirrie uranium mine in Western Australia,” said the MCA in a post-election release.

The election campaign was, of course, a time for promises, and the MCA was happy to remind the Coalition of the promises it made regarding the resources industry, including a AU$30 million cash injection to establish a School of Mining and Manufacturing at a Queensland university, the development of a critical minerals strategy and a AU$3.4 million program to encourage women to move into sectors pertinent to mining through science, technology, engineering and mathematics.

In Queensland, where some believe the election was won, the Queensland Resources Council (QRC) immediately sought talks with the state Labor government over its commitment to the Adani coal mine.

QRC Chief Executive Ian Macfarlane said, “Queenslanders have spoken and their message is clear. They support mining jobs and they expect their governments to support them too.”

The state Labor government — which faces an election next year — cleared the way for final approvals for the mine in the aftermath of the federal election.

The election also saw electoral fallout in the state of Victoria, which, like Queensland, is led by a Labor state government.

The Victorian Labor government had actively campaigned for its federal counterpart to be elected, with billions in funding commitments that it was sure it was going to receive to cover a slate of infrastructure projects. With a Coalition victory, it is now not going to receive them.

Shortly after the election, the Victorian government released its budget for the 2019/2020 year, detailing increases in property taxes and, interestingly, a new gold royalty of 2.75 percent for miners operating in the state. The royalty is designed to help balance the books.

The MCA had plenty to say about that as well, calling the new royalty a “gold tax” that threatens jobs and will drive away investment.

The council noted that Victoria already ranks 43rd out of 83 mining jurisdictions when it comes to investment attractiveness. Victoria was ahead of only one other Australian state in 2018 — Tasmania — which came in at 44th.

The MCA said that just because all of the other jurisdictions in Australia have gold royalties, that doesn’t mean Victoria should have one too.

“The claim that Victoria should impose a gold royalty because other states do ignores the unique characteristics of gold mining in Victoria,” it stated.

“Royalty regimes are designed differently in each state to encourage development of a state’s mineral resource for the benefit of the community, including different royalty rates, depreciation arrangements, exemptions and other features.”

Another proposed mine touched on during the election, the Yeelirrie uranium mine, is unlikely to be developed in the near term as its owner, Canadian uranium miner Cameco (TSX:CCO,NYSE:CCJ), has made it clear that it will only proceed with development once market conditions improve.

On the EV front, Labor’s ambitious policy target of EVs making up 50 percent of all new car sales by 2030 will now fall by the wayside, with more conservative Coalition policy entrenched for the next three years.

EV policy was a major sticking point, at least in discourse, between the two major parties during the election, though both took steps in developing critical metal strategies.

Whatever the impact of the election on the different sectors of the resources industry, investors apparently see a bright future ahead, as immediately after the election, the Australian Securities Exchange soared to decade highs.

Don’t forget to follow us @INN_Resource for real-time updates!

Securities Disclosure: I, Scott Tibballs, hold no direct investment interest in any company mentioned in this article.

Hastings Technology Metals Ltd Stand-out Simon’s Find Metallurgical Test Results Amended

Perth, Australia (ABN Newswire) – Australia’s next rare earths producer Hastings Technology Metals Ltd (ASX:HAS) (5AM.F) is pleased to announce stand-out results from metallurgical test work carried out on drilling samples from Simon’s Find, one of the key deposits that make up the Yangibana Rare Earths Project (Yangibana) in Western Australia’s Gascoyne region.

The test work carried out at Simon’s Find is a key milestone in the Company’s finalisation of its updated Ore Reserves and mine scheduling that will underpin Yangibana’s development.

The Simon’s Find deposit is part of the 8km-long Bald Hill – Simon’s Find – Frasers mineralised trend and is strategically located close to the site of Yangibana’s proposed process plant and infrastructure.

Keep reading... Show less

Rio Tinto and ARENA to study using hydrogen to reduce carbon emissions in alumina refining

Rio Tinto has partnered with the Australian Renewable Energy Agency (ARENA) to study whether hydrogen can replace natural gas in alumina refineries to reduce emissions.

Rio Tinto will conduct a $1.2 million feasibility study, equally funded with ARENA through a $580,000 grant, into using clean hydrogen to replace natural gas in the calcination process of refining at the Yarwun aumina refinery in Gladstone.

Keep reading... Show less

Hastings Technology Metals Ltd Stand-Out Simon’s Find Metallurgical Test Results

Perth, Australia (ABN Newswire) – Australia's next rare earths producer Hastings Technology Metals Ltd (ASX:HAS) is pleased to announce stand-out results from metallurgical test work carried out on drilling samples from Simon's Find, one of the key deposits that make up the Yangibana Rare Earths Project (Yangibana) in Western Australia's Gascoyne region.

The test work carried out at Simon's Find is a key milestone in the Company's finalisation of its updated Ore Reserves and mine scheduling that will underpin Yangibana's development.

Keep reading... Show less

Australia’s 5 Most Valuable Mineral Exports

Australia’s economy is largely based on its natural resources, with the minerals sector making the greatest contribution to the nation’s exports.

Four of Australia’s states and territories rank in the top 20 mining jurisdictions in the world, according to the Fraser Institute’s latest annual survey of mining companies: Western Australia (fourth), Southern Australia (seventh), Queensland (16th) and the Northern Territory (19th).

These mining jurisdictions demonstrate a high level of investment attractiveness mainly due to their mineral-rich geology, solid infrastructure, stellar economic environment and government support for the resources industry at both the federal and state level.

Keep reading... Show less

Newcrest Mining Limited – Exploration Update 10 June 2021

Highlights

  • At Red Chris, drilling continues to expand the higher grade mineralisation intersected at East Ridge and in the Main Zone:
    • At East Ridge, the new discovery adjacent to the East Zone, drilling continues to expand the footprint of the higher grade mineralisation with RC688 returning 344m @ 0.70g/t Au & 0.75% Cu from 776m, incl. 170m @ 1.1g/t Au & 1.1% Cu from 892m. This hole is 100m east of the discovery hole RC678 (previously reported).
    • East Ridge is located 300m east of East Zone and outside of Newcrest's Red Chris Mineral Resource Estimate. Drilling to define the extent of the higher grade mineralisation is ongoing.
    • In the Main Zone, drilling has intersected high grade mineralisation with RC683 returning 300m @ 0.41g/t Au & 0.51% Cu from 260m, incl. 114m @ 0.67g/t Au & 0.85% Cu from 390m, incl. 22m @ 1.1g/t Au & 1.4% Cu from 464m. This hole is 100m east of RC679 (previously reported).
    • Main Zone has the potential for further higher grade mineralisation beneath and to the south west of the open pit.
Keep reading... Show less

Hastings Technology Metals Ltd Stand-out Simon’s Find Metallurgical Test Results Amended

Perth, Australia (ABN Newswire) – Australia’s next rare earths producer Hastings Technology Metals Ltd (ASX:HAS) (5AM.F) is pleased to announce stand-out results from metallurgical test work carried out on drilling samples from Simon’s Find, one of the key deposits that make up the Yangibana Rare Earths Project (Yangibana) in Western Australia’s Gascoyne region.

The test work carried out at Simon’s Find is a key milestone in the Company’s finalisation of its updated Ore Reserves and mine scheduling that will underpin Yangibana’s development.

The Simon’s Find deposit is part of the 8km-long Bald Hill – Simon’s Find – Frasers mineralised trend and is strategically located close to the site of Yangibana’s proposed process plant and infrastructure.

Keep reading... Show less

Rio Tinto and ARENA to study using hydrogen to reduce carbon emissions in alumina refining

Rio Tinto has partnered with the Australian Renewable Energy Agency (ARENA) to study whether hydrogen can replace natural gas in alumina refineries to reduce emissions.

Rio Tinto will conduct a $1.2 million feasibility study, equally funded with ARENA through a $580,000 grant, into using clean hydrogen to replace natural gas in the calcination process of refining at the Yarwun aumina refinery in Gladstone.

Keep reading... Show less

Hastings Technology Metals Ltd Stand-Out Simon’s Find Metallurgical Test Results

Perth, Australia (ABN Newswire) – Australia's next rare earths producer Hastings Technology Metals Ltd (ASX:HAS) is pleased to announce stand-out results from metallurgical test work carried out on drilling samples from Simon's Find, one of the key deposits that make up the Yangibana Rare Earths Project (Yangibana) in Western Australia's Gascoyne region.

The test work carried out at Simon's Find is a key milestone in the Company's finalisation of its updated Ore Reserves and mine scheduling that will underpin Yangibana's development.

Keep reading... Show less

Australia’s 5 Most Valuable Mineral Exports

Australia’s economy is largely based on its natural resources, with the minerals sector making the greatest contribution to the nation’s exports.

Four of Australia’s states and territories rank in the top 20 mining jurisdictions in the world, according to the Fraser Institute’s latest annual survey of mining companies: Western Australia (fourth), Southern Australia (seventh), Queensland (16th) and the Northern Territory (19th).

These mining jurisdictions demonstrate a high level of investment attractiveness mainly due to their mineral-rich geology, solid infrastructure, stellar economic environment and government support for the resources industry at both the federal and state level.

Keep reading... Show less

Newcrest Mining Limited – Exploration Update 10 June 2021

Highlights

  • At Red Chris, drilling continues to expand the higher grade mineralisation intersected at East Ridge and in the Main Zone:
    • At East Ridge, the new discovery adjacent to the East Zone, drilling continues to expand the footprint of the higher grade mineralisation with RC688 returning 344m @ 0.70g/t Au & 0.75% Cu from 776m, incl. 170m @ 1.1g/t Au & 1.1% Cu from 892m. This hole is 100m east of the discovery hole RC678 (previously reported).
    • East Ridge is located 300m east of East Zone and outside of Newcrest's Red Chris Mineral Resource Estimate. Drilling to define the extent of the higher grade mineralisation is ongoing.
    • In the Main Zone, drilling has intersected high grade mineralisation with RC683 returning 300m @ 0.41g/t Au & 0.51% Cu from 260m, incl. 114m @ 0.67g/t Au & 0.85% Cu from 390m, incl. 22m @ 1.1g/t Au & 1.4% Cu from 464m. This hole is 100m east of RC679 (previously reported).
    • Main Zone has the potential for further higher grade mineralisation beneath and to the south west of the open pit.
Keep reading... Show less

Scoping Update Highlights the Exceptional Economics and Industry-Leading Sustainability of Piedmont’s Carolina Lithium Project

Piedmont Lithium Inc., (“Piedmont" or the “Company") (NASDAQ: PLL; ASX: PLL) is pleased to report the results of the updated scoping study (“Scoping Study" or “Study") for its proposed integrated lithium hydroxide business (“Carolina Lithium" or the “Project") in Gaston County, North Carolina. The Study confirms that Carolina Lithium will be one of the world's largest and lowest-cost producers of lithium hydroxide, with a sustainability footprint that is superior to incumbent producers, all in an ideal location to supply the rapidly growing electric vehicle supply chain in the United States.

Keep reading... Show less

Top News

Related News