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Submission on how the mining sector can support businesses...
admin
2018-08-21
发布年2018
语种英语
国家澳大利亚
领域地球科学
正文(英文)

 The Minerals Council of Australia welcomes the opportunity to make a submission to the House of Representatives Standing Committee on Industry, Innovation, Science and Resources inquiry into how the mining sector can support businesses in regional economies. This is a joint submission with the Queensland Resources Council, South Australian Chamber of Mines and Energy and New South Wales Minerals Council.

A regional industry, creating wealth and opportunity outside of capital cities

The minerals industry is proud to be an active partner of communities across regional Australia. Working in partnership with host communities and regions, the industry supports shared and sustainable benefits from minerals development.

The resources sector employs 217,600 people in highly skilled, highly paid jobs – predominantly in remote and regional Australia. Workers in Australian resources industries earn around $140,000 a year on average – more than 60 per cent higher than the average for all industries.

According to Deloitte Access Economics, the combined mining and mining equipment, technology and services (METS) sector (excluding oil and gas) supports a total of 1.1 million workers (directly and indirectly) or approximately 10 per cent of jobs in Australia.1 Many METS sector roles are located close to regional mining activities.

The Productivity Commission’s study report on Transitioning Regional Economies (December 2017) found that average personal income remains higher in mining regions than in non-mining areas.2 Further, many mining regions continue to perform well and will likely experience economic and employment gains for decades to come, irrespective of commodity cycles.

Australia’s world-class mining industry is also a significant source of small business growth. Analysis by the Department of Industry, Innovation and Science suggests that mining accounts for the largest industry share of micro start-up businesses and is one of the largest contributors to job creation by these businesses.

Engaging local suppliers is a longstanding industry priority with company programs tailored and adapted to maximise opportunities

Local suppliers, ranging from small businesses to national and export-focused firms, are an important source of high-quality goods and services for the minerals industry. Supporting local procurement is also part of the industry’s commitment to ensuring host communities and regions benefit from minerals development. This supports both sharing of economic benefits from minerals development while enabling suppliers to leverage contracts with a mining company into new growth opportunities.

Many companies have developed tailored approaches to maximise local procurement opportunities. These programs seek to respond to local capability and expertise, operational requirements and the need to be commercially competitive, with expectations for broader contributions to sustainable socio-economic development.
 
Common aspects of local procurement approaches include structuring work in a way that enables a number of smaller companies to bid for contracts and establishing specific mechanisms to allow local businesses to provide a capability statement, understand company standards and requirements and be advised of tender opportunities. Where the volume or specialised nature of particular goods and services mean that local procurement is not feasible, many companies require specialised suppliers ensure flow-on local employment and procurement opportunities.
 
While higher economic growth in many mining regions has been sustained following the transition from the mining investment boom to the current production phase, the minerals industry recognises the scale and scope of procurement has changed in some areas. Where practical, many companies have worked to adapt local procurement approaches to create new economic opportunities.
 
Case studies in this submission illustrate the minerals industry’s approach to local procurement.
 
Supporting stronger communities through social and community investment
 
The minerals industry’s socio-economic contribution to the communities and regions in which it operates extends beyond local procurement. Taking a broader approach enables the minerals industry to help advance a community’s social, economic and environmental priorities, and provide benefits for those not directly involved in mining activities through related business opportunities and employment.
 
The minerals industry recognises that every community and region is different, with different social and economic priorities and different skills bases and business capabilities.
 
For this reason, industry approaches to social investment are increasingly focused on partnering with local governments, community organisations and development organisations to support delivery of community-led initiatives. This ensures that industry support is targeted at initiatives that support local values, community resilience and regional economic development priorities.
 
The minerals industry’s support for communities aligns with Enduring Value – The Minerals Industry Framework for Sustainable Development. The framework articulates how mining companies – and the broader industry – can support sustainable economic growth, social inclusion and environment protection and management. Enduring Value principles of particular relevance are:
 
  • Principle 2: Integrate sustainable development principles into company policies and practices
  • Principle 9: Contribute to the social, economic and institutional development of the communities in which we operate
  • Principle 10: Implement effective and transparent engagement, communications and independently verified reporting arrangements with stakeholders.
The MCA advocates for pre-competitive policies that support the efficient and sustainable development of Australia’s resources. Accordingly, while this submission outlines common aspects of different companies’ local procurement practices, it makes no comment on commercial arrangements between mining companies and suppliers, or on supplier approaches to innovation and research and development.
 
The mining investment phase helped grow the world-class Australian METS sector – with significant opportunity to leverage further growth
 
The minerals industry is proud that its collaboration and engagement with suppliers and contractors has helped grow Australia’s world-class METS sector. Many firms, including in regional Australia, that were established or expanded to supply the mining industry have leveraged this capability and capacity into contracts in other mining regions and export markets. This growth was accelerated during the recent mining investment phase.
 
Case studies of innovative and long-term contributions to support stronger regional communities and economies are included.
 
There is significant opportunity for the further expansion of these METS companies, including in regional Australia, into new markets both here and abroad. Together Australia’s mining and METS sector contribute significantly to research partnerships and programs driving innovation, supporting productivity and enabling continuous improvement of social and environmental performance. National and state governments also make substantial contributions, including through cooperative research centres and industry growth centres like METS Ignited.

 

Read more: PDF iconMCA Submission on how the mining sector can support businesses in regional economies - 20 August 2018.pdf

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来源平台Minerals Council of Australia
文献类型新闻
条目标识符http://119.78.100.173/C666/handle/2XK7JSWQ/219238
专题地球科学
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GB/T 7714
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