Australia - Mineral Development And Policies

The Australian continent possesses significant reserves of a wide range of minerals, including bauxite, coal, copper, diamonds, gold, iron ore, lead, manganese, mineral sands, nickel, phosphate, silver, tin, uranium, and zinc. Australia's identified economic resources of many minerals are very large as indicated in Table 1. A sophisticated and highly experienced mineral industry is now an established feature of the Australian economy and Australia is the world's largest exporter of iron ore, alumina, mineral sands and refined lead and amongst the leading suppliers of many other commodities such as coal, lead and zinc ores/concentrates, nickel, refined zinc, tungsten concentrates and bauxite. The industry exports 70% of its production. This is reflected in the value of Australian mineral exports which have grown from about $200m in 1960/61, comprising 10% of total export receipts, to about $1265m or 29% of export income in 1970/71 to around $7061 representing 37% of Australia's total export income in 1980/81. Details of the more significant minerals are as follows: Japan (42.1%) USA (11.3%) ASEAN (6.3%) UK (5.9%) F.R. Germany (3.8%) Republic of Korea (3.4%) New Zealand (2.6%) Also see Table 2. AUSTRALIA'S MINERAL RESOURCES POLICIES Federal and State Governments' Responsibilities Australia has a federal system of government comprising six States, a self-governing Territory and a Federal Government. Under the Australian federal system the Constitution sets down the powers of the Federal Government. All powers not assigned to the Federal Government in the Australian Constitution reside automatically with the States. Certain of these broad powers result in the Federal Government having a significant influence on resources development. For example, in being responsible for economic management, the Federal Government's fiscal and monetary policies have an important effect on industry as well as on State finances. In particular, the taxation regime employed by the Federal Government is of direct importance to decision-makers in the resources industry. The Federal Government is responsible also under the Constitution for external trade matters; and international trade and commodity matters are increasingly important in Australia's international relationships. Foreign investment is another area where the Federal Government has a role to ensure that national interests are protected. This foreign investment power flows from the Federal Government's control of foreign exchange movements into and out of Australia. However, before enlarging on these and others of the Federal Government's powers and policies, it should be emphasized that the State governments, by virtue of their wide powers to regulate matters within their own boundaries, are more directly involved in the day-to-day administration and regulation of mining operations. For instance, the powers of the State governments include the responsibility-for the granting of exploration rights and mining leases, the approval of mining operations and the levying of royalties and other like charges. Administrative arrangements covering the granting of minerals and petroleum exploration and development titles vary from State to State. Before development rights are granted, State governments consider environment protection and rehabilitation aspects of development proposals. The provision of infrastructure within State borders is a matter primarily of State government responsibility. It is usual practice in Australia for State governments to construct and operate infrastructure services such. as railways, ports and electricity generation and transmission. The States may also provide certain public services such as electricity. and water, port and loading facilities, communications, health and education services which form part of the infrastructure of mining operations. In remote areas the mining companies themselves usually are expected to provide much of this infrastructure. However, the Federal Government is primarily responsible in some fields, such as telecommunications and parts of the railways network. State governments carry out preliminary exploration and geological mapping and some are directly involved in the mining of coal for power generation. The Federal Government's responsibilities in addition to economic management, taxation, international relations, foreign capital and investment, include regulation of exports, environmental matters and matters affecting the Aboriginals of the Northern Territory. FEDERAL GOVERNMENT POLICIES The continued sound development of the minerals and energy resources sector is regarded by the Federal Government as being of very great importance. However, the Government does not seek to participate directly in resource developments. It sees its role rather as that of establishing a sound economic and policy climate in which private companies can identify opportunities, seek out customers and marshall the necessary capital for the development of resource projects.