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MCA pushes for infrastructure overhaul

INDEPENDENT consultancy ACIL Tasman has calculated Australia could be $A129 billion better off by 2020 if capacity constraints to the resources industry are overcome.

Blair Price

The Australian Minerals Industry’s Infrastructure Path to Prosperity report is the second phase of the Minerals Council of Australia’s Vision 2020 project and assesses capacity constraints with transport, energy, telecommunications and water networks.

The report also dives into social needs that limit mining growth, in areas such as housing, labour and the development of regional communities.

Findings of inadequate infrastructure are a common theme throughout the report, which covers 21 minerals growth regions across the nation.

“To ensure Australia is equipped to come through the current economic malaise, new physical and social infrastructure will be needed and much of the existing export capital will need to be repaired or expanded, the nationwide audit found,” MCA chief executive officer Mitchell H Hooke said.

“This comprehensive examination of existing and projected infrastructure needs in Australia’s key minerals regions released today sounds a warning to both governments and industry that a failure to address key shortfalls in the nation’s infrastructure could see a repeat of past failings – when ships queued off the coastline, skilled employees were difficult to attract and retain, and international competitors increased their share of the global market at Australia’s expense.”

While acknowledging the infrastructure spending in the latest federal and Western Australian state government budgets were a good start to build on, Hooke said governments must also get the policy settings right to encourage investment.

“That means better regulation and planning, reducing and not increasing sovereign risk and the careful crafting of other relevant policies, such as the Carbon Pollution Reduction Scheme, to ensure that Australians can share in this 21st century economic revolution.”

Various growth impediments in Queensland were identified by the report, most notably with the export supply chain.

MCA said the supply chain was hamstrung due to legacy issues associated with inadequate planning, poor coordination between infrastructure service providers, multiple definitions of capacity based on different and at times unrealistic assumptions, and an absence of performance-based contractual frameworks.

Water unavailability, lack of transport, telecommunications and community infrastructure, such as housing and health facilities, were also concerns raised in the report.

For New South Wales, MCA said the report found the port infrastructure was unable to meet current or projected demand for mineral export services, while the rail and road networks were unable to meet the mineral industry’s current or projected transport needs.

Energy production was deemed inadequate and MCA also noted there were undeveloped management arrangements for water for both industrial and community use.

The federal government has chipped in an extra $8.5 billion for roads, railways and ports across the nation in its latest budget.

The report by ACIL Tasman, which also undertakes studies on behalf of the federal government, is available as part of a 592-page Vision 2020 document on the MCA’s website.

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