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MONEYBAGS McGOWAN
Premier’s economic update is SO GREAT he had to find ways to shrinks $1,844,000,000 surplus Premier Mark McGowan’s embarrassment of riches has been starkly revealed in yesterday’s mid-year Budget update which shows this year’s surplus rising to $1.84 billion despite big increases in spending as mining royalties soar. It comes as the State Government upgraded its revenue for 2022-23 by $2.2 billion since the May Budget with iron ore alone tipping in an additional $1.5b.
All eyes on iron ore
Iron ore development in Western Australia is drawing attention thanks to big moves made by Hancock Prospecting and BHP. Hancock Prospecting executive chair Gina Rinehart has shown that her recent investments in gas and critical minerals have not shifted her presence in the iron market. Rinehart has fully united both Roy Hill and Atlas Iron under one roof thanks to an initial deal struck in 2018. The new conglomerate will see Roy Hill chief executive Gerhard Veldsman become CEO of group operations at Hancock. The new title will come with added responsibility for Roy Hill and Atlas Iron operations, as well as other projects.
IR mayhem warning for small firms
More than 56,000 small and medium businesses could be hit with “industrial mayhem” under Anthony Albanese’s workplace shake-up, the Coalition has warned, as key crossbench senator David Pocock pushes the government to widen multiemployer bargaining exemptions.
In its submission to the Senate inquiry, Gina Rinehart’s Hancock Prospecting said “at a minimum the mining sector must be excluded from multi-employer bargaining”. The iron ore, beef and coal giant, which directly employs 4500 workers and supports 9000 jobs, said the bill “puts at risk not only the interests of mining workers, but the broader economic benefits and tax and royalty revenues the mining industry makes possible”.
Fresh ideas needed to keep tech talent
Miners must band together and present a new vision of the sector as they compete for digital talent with the “cool kids” like Google and Amazon, says BHP’s chief technical officer. “We must lead the way in developing this future workforce. How do we attract and retain these skills from mining engineers to stack developers to industrial engineers and venture capitalists? “We have to talk differently about the work we offer.”
Hancock warns of IR troubles
Gina Rinehart’s Hancock Prospecting says billions of dollars in future royalty and tax revenue for the WA economy would be in jeopardy if multi-employer bargaining codes are forced onto the mining sector. Hancock Prospecting chief executive Garry Korte said a six-week period of strike action at Port Hedland would cost $9 billion in lost iron ore export revenue and an estimated $551m in lost mining royalties to the WA Government. “If the Bill were to pass in its current form it would open the door to a confrontational industrial relations system that could cripple our industry and result in poorer wage outcomes for our workers,” he said.
Business community warns Labor’s IR laws will result in 1970s-style strikes and job chaos
“Businesses will carry a much heavier regulatory burden which inevitably leads to less productive workplaces. It is not a long term recipe for wage growth, it is the opposite.” WA’s mining giants including Gina Rinehart’s Hancock Prospecting and Rio Tinto have been among the most vocal critics, saying there was no evidence the reforms backed by unions would create real wages growth or boost productivity.
Rinehart warns of ‘heat or eat’ choices as energy costs surge
The speech marked the tenth anniversary of the Hancock Prospecting-instigated National Mining and Related Industries Day. Mrs Rinehart, who rarely gives interviews, is also celebrating 30 years since she returned to Hancock Prospecting as the group’s executive chairman. Hancock Prospecting now makes enormous profits from the Roy Hill iron ore mine developed under Mrs Rinehart’s leadership as well as receiving royalties from Rio Tinto.
Resources fund keeps boom times rolling
That this State has been blessed with a great bounty of natural resources is a wonderful gift. Through flukes of geology and the hard yakka of generations of miners, WA has established itself as one of the world’s strongest economies.
Now it looks like it will help us dodge the turmoil wreaking havoc in other major economies around the world. However, one of the shortcomings of a resources-dependent economy such as ours is its boombust nature. When times are good, money flows and everyone benefits. Hancock Prospecting has committed $100m while Woodside, Chevron and Mineral Resources have chipped in $50m apiece.
