Miners face buy-local push to share the boom

Mining and energy companies could face new measures to encourage them to use Australian suppliers and contractors for big projects, the Australian Financial Review reports.

Industry and Climate Change Minister Greg Combet said he would issue a major industry and innovation statement before Christmas which could expand government-mandated Australian industry participation plans required on large resources projects.

“We want the resources companies to be genuine about ensuring Australian businesses have opportunities,” he said. “I will take feedback as to how that is working and if we need to have a closer look at it again, we are open to doing so.”

Unions have complained that many local businesses are missing out on work on big projects in Western Australia and elsewhere. Project owners say they are forced to go overseas for specialist design and construction skills which don’t exist in Australia.

Orica uses enemy's ammunition to return fire

Orica has fired a shot back at Queensland authorities after the state’s environment minister linked it to damage to Gladstone harbour and the Great Barrier Reef, according to The Australian.

A spokeswoman for the chemicals and explosives giant said the company was confident effluent from its cyanide plant was having no impact on the environment, citing the government's own research as proof.

Orica was charged in Gladstone magistrates’ court on Friday with 279 offences under the Environmental Protection Act, relating to effluent discharge from its Yarwun sodium cyanide plant.

Each charge carries a maximum penalty of $1 million.

After announcing the charges Environment Minister Andrew Powell said the company had a history of offences dating back to 2007 and the department "took particular interest in any behaviour that may affect the Gladstone harbour environment or have a detrimental effect on the Great Barrier Reef".

The Orica spokeswoman said that as one of the world's largest producers of cyanide the company was acutely aware of its effect on marine life and was satisfied there was no impact.

Weak China data add to pressure for stimulus

China’s consumer prices rose the least in two years in May and industrial output and retail sales trailed estimates, adding pressure for more stimulus after the first interest-rate cut in three years, according to the Sydney Morning Herald.

Inflation slowed to 3% from a year earlier, the National Bureau of Statistics said, compared with the 3.2% median forecast in a Bloomberg News survey.

Production increased 9.6%, lower than a projected 9.8% gain, and retail sales climbed 13.8%, the Beijing-based bureau said in separate statements.

The data add to concern global growth is stalling as Greece teeters on the edge of exiting the euro, Spain struggles to restore confidence in its banking system, and US job growth weakens.

Premier Wen Jiabao may introduce additional stimulus to protect a full-year growth target of 7.5% even as the nation wrestles with bad loan risks from local government debt.