A new report has warned that labour costs in Australia’s mining industry are among the highest in the world.
The Minerals Council of Australia report says the latest modelling reveals that capital costs have made new thermal coal projects 66 per cent more expensive and iron ore projects 30 per cent more costly to build than the global average.
The paper, produced by Port Jackson Partners, found that real gross domestic product would be 5.3 per cent lower in 2040 if Australia does not act to boost competitiveness, media reports says.
“Policy decisions made now can create or destroy an economic opportunity equal to more than five per cent of the Australian economy in 30 years, with lower minerals industry growth quickly translating into poorer economic performance,” the report said.
The report outlines measures that could be adopted, including halting spiralling wage costs by deploying skilled immigration and sending workers in manufacturing jobs on the east coast to mining jobs in WA.
Earlier this year, the federal government sought to discredit preliminary modelling because Angus Taylor, a partner of Port Jackson Partners, was seeking Liberal Party preselection. Mr Taylor has since been pre-selected for the federal seat of Hume