“These significant investments recognise the central role our resources will continue to play in our economy and future prosperity”

The Chamber of Minerals and Energy of WA (CME) has welcomed the Federal Government’s 2024-25 Budget and its centrepiece $22.7 billion Future Made in Australia package including a $7 billion investment in processing critical minerals.

CME Chief Executive Officer, Rebecca Tomkinson, said WA’s resources sector had once again contributed to a strong federal budget position, with higher commodity prices driving an additional $5.5 billion in company tax receipts in 2024-25 relative to the Mid-Year Economic and Fiscal Outlook.

“These significant investments recognise the central role our resources will continue to play in our economy and future prosperity,” said Ms Tomkinson.

“It’s pleasing to see the Federal Government adopt CME recommendations such as a production tax incentive for critical minerals, funding for common-user infrastructure and support to bridge the commerciality gap for renewable hydrogen singled out in the Budget under the Future Made in Australia package. Reforms to streamline Australia’s foreign investment review processes for low-risk investors is an important complementary measure.”

Ms Tomkinson also noted the Federal Government’s pre-Budget announcement last week of $566 million under the Resourcing Australia’s Prosperity initiative to boost data collection and mapping of resources deposits on land and under the seabed.

Minister King’s strong engagement with industry is evident in the design of the initiatives announced today.

“Recommendations for unlocking investment were at the heart of CME’s Federal Pre-Budget Submission, so it’s positive to see the government has paid attention to exploration’s role in developing the pipeline of resources projects that will support the energy transition,” she said.

“We need to ensure that the work being done to improve the identification of resources deposits is complemented by fit-for-purpose policies and frameworks to develop those opportunities in a timely and efficient way.

“When the WA resources sector is strong and competitive, it has a positive flow-on effect for the Australian economy and community.”

However, she reiterated that ensuring a strong ongoing contribution from the resources sector would require inter-departmental coordination if strategic industry and decarbonisation ambitions were to be realised.

“We need assurances that our sector, which is contributing so much to the state and national economies, is not hamstrung by unintended consequences from reforms in the environmental approvals and industrial relations space,” Ms Tomkinson said.

“The Government needs to ensure policies are formed on the bedrock of timely and efficient approvals and competitive fiscal and policy settings across energy, industrial relations and enabling infrastructure.”

Ms Tomkinson added that the establishment of a National Interest Framework to guide the Federal Government’s support under the Future Made in Australia policy made strategic sense.

“We need to play to our strengths, develop sovereign capabilities in critical areas and be realistic about where we can and can’t compete. Embracing those core objectives opens up opportunities to work more strategically with our trading partners.”

Key announcements in the Budget included:

• Critical Minerals Production Tax Incentive – $7 billion over the 11 years from 2023-24 to provide a 10 per cent credit for relevant processing and refining costs for Australia’s 31 critical minerals. The incentive will be applicable for up to 10 years per project, for production between 2027–28 and 2039–40 by projects that reach final investment decisions by 2030.
• Hydrogen Production Tax Incentive – $6.7 billion over the 10 years from 2024-25 to provide a $2/kg incentive to support the growth of a competitive renewable hydrogen industry and Australia’s decarbonisation. The incentive will be applicable for up to 10 years per project, for production between 2027–28 and 2039–40.
• Future Made in Australia Innovation Fund – $1.7 billion over ten years from 2024–25 to support innovation, commercialisation, pilot and early-stage development in priority sectors including renewable hydrogen, green metals, low carbon liquid fuels and clean energy technology manufacturing such as batteries.
• Battery Breakthrough Initiative – $523.2 million over seven years from 2024–25 to promote the development of battery manufacturing capabilities through production incentives targeted at the highest value opportunities in the supply chain.
• Strengthening Approvals Processes – $182.7 million over 8 years from 2023-24 to strengthen approvals for renewable energy, transmission and critical minerals projects, improve social license outcomes, reduce the backlog of complex cultural heritage applications and streamline Australia’s foreign investment applications.
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“[Simon] takes on the presidency at a time of great opportunity and challenges for the sector as we head into state and federal election cycles. It’s a highly pivotal leadership role and one that’s instrumental in holding policy makers to account on behalf of industry.”

The Chamber of Minerals and Energy of Western Australia (CME) has announced the appointment of Simon Trott as its new President.

Mr Trott, who is the Chief Executive of Rio Tinto Iron Ore in Western Australia, succeeds Brandon Craig, who has stepped down as CME President to take on the role of President Americas with BHP.

The appointment was made at CME’s 123^rd Annual General Meeting, where DEVELOP Global Limited’s Bill Beament was re-elected to the Vice President role, and Roy Hill’s Sanjiv Manchanda was newly appointed as Vice President.

“CME has a proud history of advocacy for WA’s resources industry and I’m looking forward to helping drive the organisation’s strategic direction over the next few years, working closely with Rebecca, the executive council and the team,” Mr Trott said.

“The development of WA’s natural resources continues to underpin the prosperity of our state and our nation. In 2022-23 the sector supported 3 in 10 West Australian jobs, 15,508 local businesses and 1,312 community organisations.

“It also contributes one third of WA Government’s general revenue and 20 per cent of federal corporate income taxes, supporting the delivery of public goods and services from which the whole community benefits.”

Mr Trott has been with Rio Tinto for more than 20 years in a variety of operating, commercial and business development roles across a number of commodities.

CME Chief Executive Officer Rebecca Tomkinson welcomed Mr Trott to the role.

“Simon’s involvement with CME on our Advisory Board and Executive Committee has highlighted his experience and knowledge as a leader and industry professional in the mining and resources sector,” Ms Tomkinson said.

“He takes on the presidency at a time of great opportunity and challenges for the sector as we head into state and federal election cycles. It’s a highly pivotal leadership role and one that’s instrumental in holding policy makers to account on behalf of industry.”

Ms Tomkinson also paid tribute to outgoing president, Brandon Craig, who was appointed to the CME role in April 2022 while serving as BHP’s Asset President, Western Australia Iron Ore.

“Brandon’s leadership roles with BHP over more than 20 years have been incredibly diverse. Those wide-ranging skills were an asset to his role as CME’s President, a role he approached with characteristic rigour and passion. We wish him every success in his new appointment,” she said.

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Media contact: Natasha Mutch n.mutch@cmewa.com

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“We understand that striking the right balance isn’t easy. That’s why we’ve been strongly advocating for transparent consultation processes, including the opportunity for experts within our member organisations to test key reform elements.”

The Chamber of Minerals and Energy of WA (CME) acknowledges the announcement by Federal Environment Minister, Tanya Plibersek, advising that the Federal Government will take a staged approach to the implementation of Nature Positive reforms.

CME Chief Executive Officer, Rebecca Tomkinson, said the organisation had consistently advocated for the government to approach the reform with a long-term view for a fit-for-purpose design that incorporated direct industry engagement and expertise.

“Minister Plibersek’s decision shows an understanding that these once-in-a-generation reforms must be enduring and deliver the ‘better for the environment and better for business’ objectives,” said Ms Tomkinson.

“We understand that striking the right balance isn’t easy. That’s why we’ve been strongly advocating for transparent consultation processes, including the opportunity for experts within our member organisations to test key reform elements.

“As I’ve said before, if the Federal Government gets it wrong, better environmental outcomes are at risk, and the ongoing economic contribution of the sector’s existing operations and $93 billion in future WA investment projects and associated jobs are threatened.”

Ms Tomkinson added that while the Minister’s announcement provided additional time to work through the detail of the complex reform, the timing for the establishment of the independent federal Environmental Protection Authority was still tight. 

“We continue to hold reservations about the proposed decision-making model and will continue to advocate for a model that balances ecologically sustainable development considerations and includes the Minister as the decision maker,” Ms Tomkinson said.

She said the WA Government had been actively working with its federal counterparts to ensure that the reform design aligns with WA’s environmental management processes and implementation framework. 

“Maintaining strong ESG regulatory frameworks is important and a focus of industry. Our ESG approach must be coupled with efficient administration and regulation,” she said. 

“We encourage the WA Government to maintain its advocacy for WA and to prioritise this work. We will continue to highlight opportunities for the reform design to dovetail with our state environmental assessment framework.

“CME looks forward to participating fully in this process.”

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Media contact: Natasha Mutch

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“The strong ESG standards to which the WA resources sector operates is not reflected in global prices, creating an unfair playing field.”

The Chamber of Minerals and Energy of WA (CME) has responded positively to today’s joint announcement by Canada and Australia on critical minerals, noting the potential of such partnerships for strengthening the move towards a sustainable global energy transition.

CME Chief Executive, Rebecca Tomkinson, said the cooperative approach between the two countries was important to ensure a cleaner energy future was achieved with responsibly-sourced commodities.

“The Australian Government has an opportunity to work with our trading partners to support the development of price and ESG transparency in critical and battery minerals markets, and this agreement is a positive sign,” Ms Tomkinson said.

“The strong ESG standards to which the WA resources sector operates is not reflected in global prices, creating an unfair playing field.

“We need to ensure that those who are purchasing our commodities understand the value of our environmental, social and governance standards, and that due diligence obviously comes with an associated cost.

“Supply chain diversity, security and transparency are not new issues but in the context of the global energy transition, they become significant for how the industry continues to operate in a sustainable way.”

Ms Tomkinson added that regardless of WA and Australia’s high standards, the industry needed to be competitive in international markets, with government intervention needed to reduce bureaucratic red tape, attract investment and keep operating costs to a minimum.

“WA has the resources, operational stability and ESG credentials to deliver what the world needs for its energy future but like any business, we need to be agile and competitive, and the state and federal governments have a role to play in that.”

<ENDS> Media contact: Natasha Mutch / media@cmewa.com.au

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Looking forward, any changes to domestic gas policy settings must appropriately balance the needs of both gas consumers and producers

Rebecca Tomkinson, CEO Chamber of Minerals and Energy of WA

The Chamber of Minerals and Energy of WA (CME) has noted that today’s release of the WA Economics and Industry Standing Committee’s Interim Report on the WA Domestic Gas Policy confirmed the important role that gas will continue to play in energy security and the transition to net zero.

CME Chief Executive Rebecca Tomkinson said that while gas demand in the WA domestic market is forecast to grow over the next decade – driven by both decarbonisation activities and expansion opportunities within industry – the Interim Report found a “credible risk that the state will face a substantial gas supply shortfall” into the next decade.

“The report is clear that any scenario that jeopardises our gas supply security is likely to result in higher gas and electricity prices and is a risk to jobs and the state’s decarbonisation agenda,” Ms Tomkinson said.

“A low-carbon economy is not possible without first securing the natural gas, critical minerals and other resources needed now for a net zero future.”

Ms Tomkinson said the WA Government’s DomGas policy, which came into effect in 2006, had worked well for the state and this was acknowledged in the report.

“Looking forward, any changes to domestic gas policy settings must appropriately balance the needs of both gas consumers and producers,” she said.

“Further consultation will be required to avoid any adverse unintended consequences, so it’s promising to see the Committee is seeking to further test their findings with industry and the wider public and is yet to make any recommendations.

“WA needs a low emission, reliable and cost-competitive energy system by 2030. Clarity on policy settings are essential for investment certainty and market efficiency as we continue to progress towards net zero.”

<ENDS> Media contact: Natasha Mutch n.mutch@cmewa.com

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As a nation and as a state we can’t afford to approach global energy transition like a snakes and ladders game.

Today’s announcement by the WA Government to adopt the Chamber of Minerals and Energy of WA’s (CME) recommendation for a nickel royalty relief package has been recognised as a promising measure for the sustainability of the state’s nickel industry.

CME Chief Executive Officer, Rebecca Tomkinson, said the Nickel Financial Assistance Program was a positive sign that the weeks of urgent discussions with state and federal ministers and parliamentarians on behalf of industry were productive.

“This shows the state’s understanding of the importance of nickel to the critical minerals aspirations of downstream processing,” said Ms Tomkinson.

“CME has made it very clear that targeted and evidence-based government support such as temporary royalty relief makes sense for the nickel sector in the near-term, given the significance of the industry to local employment, the economy and our national strategic interests.

“Battery minerals represent a strategically important sector for the state and we need to ensure we have a solution for the short- and mid-term, as well as settings that ensure viability and sustainability in the longer term.

“The State Government’s Nickel Financial Assistance Program is one of many measures needed on the path to net zero so I look forward to seeing further strategies and actions that secure longevity in the sector.”

Ms Tomkinson said removing inefficient government processes and delivering competitive fiscal settings would be needed to attract investment in Australia’s battery and critical minerals industry and achieve 2030 and 2050 decarbonisation targets.

“As a nation and as a state we can’t afford to approach global energy transition like a snakes and ladders game,” she said.

“We have all the key people at the table so now it’s about coordinating our efforts, and we appreciate the State Government acting on this.

“Collectively, the State and Federal Governments need to ladder up and act before prospects to advance the global energy transition slip away and WA loses opportunities that other countries will willingly seize.”

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Media contact: Natasha Mutch n.mutch@cmewa.com

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CME Chief Executive, Rebecca Tomkinson, said updates to the Critical Minerals List – which identifies minerals required for global emissions reduction, advanced manufacturing and defence – were timely but the value proposition of being on the list was still unclear.

“CME has advocated to the Australian Government for the inclusion of key minerals to the list so they are covered under the Australian Critical Minerals Strategy 2023-2030 and recognised for their role in achieving 2030 emissions reduction targets,” said Ms Tomkinson.

“The global scale of the energy transition means demand for WA’s resources is at a record high, but defining the value of being on the critical minerals list has been elusive.

“Over half of Australia’s critical minerals projects are in WA, so we would welcome more detail on how the list will support the Critical Minerals Strategy. Clearer pathways for critical minerals projects to access financial incentives and investment support mechanisms would be a strong message of support from government.”

Ms Tomkinson said while the full range of benefits of being on the list were yet to be detailed by government, the creation of a secondary list for minerals of strategic importance may go some way to recognise the additional minerals required to support the energy transition.

“CME’s submission called for copper, nickel, bauxite-alumina, zinc and molybdenum to be included on the list. Molybdenum was among the five new minerals added to the primary list,” she said.

Ms Tomkinson said she hoped to see more information on how the inclusion of copper, nickel, zinc and aluminium on the strategic minerals list would unlock benefits to industry and the energy transition.

“Whether a mineral is on the primary or secondary list, project proponents need certainty to make investment decisions. What we need now is a commitment to clarity and a material change in how the government looks at its own efficiencies to help the industry achieve energy transition targets,” she said.

<ENDS> Media contact: Natasha Mutch, media@cmewa.com.au

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CME Chief Executive, Rebecca Tomkinson, said the Premier’s reshaped Cabinet afforded a fresh opportunity to continue discussions on accelerating WA’s approvals process and progress to achieve net zero.

“On behalf of CME and its members, I once again thank Minister Johnston for his service to the Western Australian community,” said Ms Tomkinson.

“Premier Cook’s addition of Hydrogen Industry to his portfolio is recognition of the strategic importance of WA in the energy transition, and we look forward to continuing to work with him under his integrated responsibilities for Federal-State Relations, State and Industry Development, Jobs and Trade.

“We also acknowledge Minister Reece Whitby’s addition of Energy to his existing Environment portfolio, as well as David Michael’s appointment as Mines and Petroleum Minister, which complements his responsibilities in the important portfolio of Ports.

“The minerals and energy sectors are part of WA’s DNA, so it is a huge responsibility to represent the potential of this state and promote our interests on the national and global stage.”

Ms Tomkinson also congratulated Hannah Beazley on her promotion to Cabinet.

Ms Tomkinson said the key issues that CME would continue to champion on behalf of its members included clearing the backlog of approvals; reducing duplication and inefficiencies between government agencies; articulating a clear regulatory framework; and providing the investment incentives and funding mechanisms that would maintain WA’s competitiveness.

“We look forward to continuing our discussions with the Cabinet team on ways to advance the WA mining and resources sector’s pivotal role in the global energy transition,” she said.

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CME Chief Executive Rebecca Tomkinson said the move to a global role was a reflection of Mr Craig’s exceptional leadership skills and strong performance overseeing BHP’s iron ore division in WA.

“We have been very fortunate to have Brandon as our President this year, and his involvement with CME on our Advisory Board and Executive Committee over the past few years has been invaluable,” she said.

“Brandon’s tenure has been at a time of great opportunity for the sector, building on the strength of our gold industry, iron ore and oil and gas sectors while also facilitating the exponential growth of our emerging critical minerals sector that will be crucial to meet our decarbonisation goals.”

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I was fortunate to catch up with many of our members at the annual CME Christmas function at Lamont’s Bishops House last week. It was a great event, with fantastic addresses from Premier Mark McGowan, Minister Madeleine King and Minister Bill Johnston.

There has been plenty on the policy agenda for CME of late, including the progress of new industrial relations legislation through Federal Parliament and the recent responses by the Federal Government to the report published by the Joint Standing Committee on Northern Australia and the Samuels Review of the Environment Protection and Biodiversity Conservation Act. 

In the past fortnight, CME also undertook media engagement around the WA Government’s progress update on the actions it is implementing as a result of the Parliamentary Inquiry Into Sexual Harassment Against Women In The FIFO Mining Industry. Eliminating all instances of sexual harassment and assault remains an absolute priority for the WA mining and resources sector, and CME’s Safe and Respectful Behaviours Working Group continues to make strong progress in relation to the recommendations from the Parliamentary Inquiry that were directed towards industry. 

I’d like to thank the entire team at the CME for their warm welcome in my first eight weeks in the job, and the support they have provided on a wide range of  issues. 

November also saw the WA Government launch the Resources Community Investment Initiative with the support of CME and member companies. Our industry has a proud track record of contributing over and above what it is required and helping fund important social and community initiatives throughout Western Australia.  It is pleasing that this initiative offers yet another mechanism for our industry to make a positive impact on everyday life in WA. 

From my own perspective, I’ve had the privilege of travelling to the Pilbara, the South West and the Goldfields  in October. It’s been great to get out to member company operations and speak to a variety of stakeholders on the ground about key issues. I recently attended the annual Miners’ Memorial event in Kalgoorlie-Boulder, which was a poignant reminder of the absolute focus on safety that our industry must always hold itself to. 

To those members I’ve had the chance to engage with so far, I thank you for the interest and generosity you’ve shown towards me. The very best part of this role is talking to our members about what’s important to them – both opportunities and challenges – and I look forward to catching up with many more of you over the months ahead. 

In addition to existing operations that are the backbone of State and Federal economies, our sector currently has $57 billion of resources projects under development and a further $87 billion in medium and longer-term projects in the pipeline – projects that will not only help shape our State’s future but play a pivotal role in global decarbonisation. 

I look forward to working closely alongside you all as these projects come to fruition, in 2023 and beyond, and I’d like to take this opportunity to wish all of our membership and stakeholders a happy, safe and healthy holiday period. 

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