Optimising the resources boom means smarter planning

That being the case - do we use the boom to position ourselves for a much lower emission world?  Do we use some of the cash flow to finance commercial-sized plants in major new technologies, such as clean coal, geothermal and nuclear, and use the learnings to get the costs down?

Do we have the minerals resources to meet sustained demand?

Australia’s mining companies face difficult and complex resource development issues as they pursue a finite resource – declining grades, employment pressures and logistical issues associated with more remote mines and extreme operating conditions.

Ore bodies are often more complex and recovery rates are lower - with consequent higher waste output. Planning and operational decisions are made more difficult by the continuing need to balance developing tougher and less valuable ore bodies against cost and demand predictions.

Environmental constraints, diminished water availability and social issues related to mining operations add to the difficulties, with competing and more complex federal, state and local policy, legislation, regulation and implementation adding to the mix.

Are we developing new minerals resources fast enough?

Australia’s mineral exports - and their revenue stream - have shown dramatic, unparalleled growth in the past couple of years. Both resource company results and the national purse reflect this fact.

But many of our principal ore bodies are, inevitably, being depleted or showing declining ore grades and we need to supplement and then replace them to maintain our minerals output to meet the anticipated demand.

For some minerals, it is widely agreed - among both miners and economists - that our exploration and development effort is lagging. Australia’s comparative share of global exploration expenditure is falling and we don’t have a bank of major new mines ready to bring on stream as required.

Australia has come to depend on mining exports to underpin much of our national wealth and wellbeing. If Australia doesn’t get the exploration-development equation right we face a long-term decline in the size, influence and revenue of the minerals industry which will hurt the economy and our standard of living.

Will we have appropriate polices and infrastructure support?

One of the clear issues emerging from our 2006 Symposium and a major report released earlier this year is that a principal impediment to Australia’s future success is our ability to undertake effective long-term planning.