What does the weekend’s Federal Election�result mean�for the future of Australian mining?
Australia has spoken strongly and Australian mining jobs and re-igniting the cash-rich resource industry is high on the agenda; with mining industry groups welcoming the coalitions pledge to secure Australian mining jobs and the resource industry’s future.
After winning the 2013 election Tony Abbott has promised to “re-boot a stalled mining boom” and boost jobs enormously.
Abbott’s incoming Finance Minister Andrew Robb, (who may soon be the trade minister in the new government), said Australia’s economy and mining sector would receive a boost from the 2013 election result. He claims the coalition will not only reduce debt but increase revenue by kick-starting mining investment.
“$150 billion worth of mining projects ready to go”
Mr Robb has stated there is $150 billion worth of mining projects ready to go and said, “We can get Australia open for business….and people’s jobs will grow massively”
The Breakdown: Resource Industry Winners of The Election 2013
Miners: Titanic mining companies like Rio Tinto, BHP Billiton, Fortescue Metals will benefit greatly by the removal of the Minerals Resource Rent Tax (MRRT) a tax on profits generated from the exploitation of non-renewable resources in Australia. More importantly, the change of government removes the threat of future taxes increasing investor confidence in new projects. This has been a sore point as many large investment decisions were put on hold owing to the the long timeframes for project approval, constant bureaucratic delays in approving mining projects and incessant taxes being layered on the mining companies, creating a stranglehold on confidence in the marketplace.
Australian mining companies would also benefit from the removal of the carbon tax. To give you an idea of how the policy was affecting mining companies: coal miner Glencore Xstrata stated the carbon tax cost them around $200 million in the 2013 financial year. Considering the carbon tax does little to reduce the effects of the cause of carbon emissions, it seems money could be well spent in other areas of training and addressing the acute skills shortage in Australia.
Aussie Jobs: The scrapping of the carbon tax will help Australian families get ahead by lowering bills, it is expected to have a running affect as Australian businesses won’t be forking out millions on taxes it has the potential to secure more jobs – particularly Australian mining jobs. It will also help boost exports and make Australia’s businesses more competitive and productive.
Energy: The carbon tax implemented on in July 2012 affected around 400 organisations; these included electricity generators, gas suppliers, and resources and manufacturing companies. Major players of the energy sectors will be celebrating with the abolishment of the carbon and mining taxes. The carbon tax has cost the nations four biggest energy companies close to $1.7 billion in the 2013 financial year.
Infrastructure: Mining contracting companies like Leighton Holdings and Downer EDI could benefit immensely if the new government injects $10 billion into major road projects; which will have a positive impact for Australian mining jobs and future jobs in civil construction projects.
Mining Exploration Tax Incentives: In a bid to boost exploration in Australia, the Coalition announced (if elected) it would introduce an Exploration Development Incentive Scheme on July 1st 2014. This would mean tax breaks for smaller resource exploration companies undertaking the costly and risky tasks of mining exploration, allowing investors to deduct the expense of mining exploration against their taxable income. The scheme focuses mostly on smaller exploration companies and again ensures our mining industry is constantly evolving – and along with it Australian mining jobs.
With the mining industry high on the agenda and the coalitions plans to “reboot” the industry and boost Australian mining jobs, now is the time to invest in the right type of mining training.
This is a link to some of the recommended mining training courses you can do to give you a leg up over others applying for Australian mining jobs.
Right now it is very important to stay ahead of the mining news and where the next wave of Australian mining jobs will be – you can do this by subscribing to iMINCO Project News.
Reference: Election 2013 and Australian Mining Jobs