There is cause for optimism in the resource and mining sector with export values forecast to increase by 35 per cent by 2020-21, according to the Department of Industry, Innovation and Science’s Resources and Energy Quarterly released today.
According to Brendan Pearson, CEO of the Minerals Council of Australia, continuing urbanisation, growth in manufacturing and increasing investment in key infrastructure in Asia nations means that demand for Australia’s coal and iron ore and other minerals will continue to grow. The report released today shows the ongoing economic contribution the industry continues to make through:
An increase in growth for export values grow with iron ore forecast to increase by 47 per cent, uranium 96 per cent, alumina 26 per cent, bauxite 228 per cent and copper 20 per cent; and
A forecast growth in export volumes with iron ore up 23 per cent, coal 5.3 per cent, uranium 71 per cent, gold 5 per cent, and alumina 3 per cent to 2020-21 compared with 2014-15.
With mining continuing to be a major economic contributor with approximately 10 per cent of Australia’s Gross Domestic Product (GDP), it is critical that further steps are taken to remove obstacles to further mining investment and improve competitiveness and productivity.
Recent research undertaken on behalf of the MCA illustrates the importance of reducing company tax to more competitive levels. Australia had the sixth highest company tax rate among 34 OECD countries in 2015, compared with the 14th highest in 2005. Australia’s 30 per cent company tax rate is about five points higher than the OECD average of 25.3 per cent.
Despite tough economic conditions and global financial uncertainty, the figures released today demonstrate that the mining industry continues to play an important role in driving the Australian economy to improve living standards, create jobs and invest in local infrastructure.