Politicians aiming to win over mining sector ahead of Australian election

Australians will head to the polls on May 3 and while cost of living and the housing crisis are the main issues for voters, both sides of politics recognize the need to win over the country’s powerful mining sector.

Australia has two major political parties, Labor and Liberal, though the Liberal Party and National Party have an alliance known as the Coalition.

Before the election was called in late March, the two main parties were neck and neck in the polls.

Peter Dutton, leader of the conservative Liberal Party, initially leaned into the early popularity of US President Donald Trump, a move that has led to him being nicknamed “Trump Lite” or “Temu Trump”.

That strategy seems to have backfired in recent weeks, with Dutton and the Liberals slipping in the polls.

While the Australian Labor Party, led by Prime Minister Anthony Albanese, is leading on a two-party preferred basis, if it can not win a majority, it will likely look to the Australian Greens for support to be able to form government.

Campaigns launched

Both Labor and the Coalition formally launched their campaigns on Sunday, April 13.

Albanese held his campaign launch in Perth in a nod to the importance of Western Australian resources sector.

He was introduced by popular WA Premier Roger Cook, who won re-election last month in a landslide.

Two days before the launch, Albanese and Resources Minister Madeleine King were hosted by Rio Tinto during a visit to the Pilbara town of Karratha.

Labor did not outline any new policies to support the resources sector but has pledged A$8 billion ($5.1 billion) of additional investment in renewable energy and low emissions technologies via an expansion of the Clean Energy Finance Corporation. 

Dutton launched his campaign in Sydney and promised to be a “friend of the mining and resources sector”.

He has warned Labor would shut down mining, particularly if it needs the support of the Greens.

Dutton and Shadow Resources Minister Susan McDonald unveiled the Coalition’s “Plan for a Strong Resources Industry”, which promises to cut red and green tape, expand the critical minerals list to include uranium, zinc, bauxite, alumina, aluminium, potash, phosphate and tin, and refocus the critical minerals strategy to better align with the defence and strategic needs of Australia and its allies.  

The plan also included a A$3.4 billion investment in Geoscience Australia over 35 years to map all of Australia, an announcement slammed by Albanese.

“That was in last year’s budget, last year’s budget that the Coalition, now, more than a year later, they’ve decided to pretend that it’s a new policy announcement at this election,” he told reporters. 

Three years of Albanese

The current government has a mixed record when it comes to mining.

One of the initiatives popular with the mining sector was the establishment of the Critical Minerals Production Tax Incentive (CMPTI), a 10% tax credit for processing and refining costs of Australia’s 31 critical minerals from July 1, 2027.

The bill was passed by the Senate in February.

“This is the first time any Australian government has put their money where their mouth is for the critical minerals industry,” the Association of Mining and Exploration Companies (AMEC) CEO Warren Pearce said.

“This will stimulate billions in new investment in critical minerals processing, which will be far more valuable than the incentives on offer.”

One of the low points of the government’s relationship with miners was the rejection of Regis Resources’ (ASX: RRL) McPhillamys gold mine last year.

After a lengthy approvals process, the proposed mine was approved by New South Wales and federal regulators but was overturned by federal Environment Minister Tania Plibersek on Aboriginal heritage grounds.

“That is a really bad message for Australia and the rest of the world,” Minerals Council of Australia (MCA) chair Andrew Michelmore told the Melbourne Mining Club in March.

Last year, the government introduced the ‘Same Job, Same Pay’ industrial relations legislation, which was slammed by BHP (ASX: BHP) as requiring it to pay inexperienced labor hire workers the same as a worker with decades of experience, impacting costs and productivity.

Dutton said he would not repeal the law.

“I understand the difficulty for some of the companies who are facing already a fairly militant union sector and want reforms but that’s our position,” he said on April 3.

Coalition all-in on nuclear

One of the Coalition’s key election policies is a plan to introduce nuclear energy into Australia’s power mix, which has been estimated to cost A$331 billion.

The policy has won the support of the MCA, while BHP is open to nuclear being considered.

“For Australia to be able to compete globally – and let’s face it, there’s economic headwinds that we’re leaning into in the coming years and decades in Australia – we have to be able to keep existing businesses competitive and to be able to grow new industries to overcome some of those headwinds,” BHP CEO Mike Henry told reporters in February.

“That requires affordable, reliable supply of electricity, whilst meeting this long-term ambition of being net zero. In order to achieve that, we have been strong proponents of a technology neutral strategy, and so, are we supportive of nuclear being part of the mix for consideration? Yes.”

Fortescue (ASX: FMG) founder and executive chairman Andrew Forrest has a different view, telling a Perth event on April 10 that he was close to the nuclear industry and knew it well after weighing up its potential for the past two decades.

He questioned why the taxpayer should have to pay for technology he described as “high cost and high risk” when compared to renewables.

“I know young males think nuclear is pretty cool but all I can say is, that’s until they’re educated. That’s until they’re told it’s not cool, it’s highly expensive to build, it’s almost impossible to take down and its power costs are nothing fancy at all,” Forrest said.

Permitting in focus

Lengthy approvals processes are a sticking point for the mining sector, something the Coalition has promised to address.

In a speech to the WA Mining Club in March, MCA chief executive Tania Constable accused the Albanese government of taking “a particular bent against our industry”.

“There is no reason in 2025 that environmental assessments and approvals could not move from years to hours, with the use of AI and enhanced environmental data,” she said.

Miners have been particularly vocal in its opposition against the government’s now-defunct Nature Positive legislation, which proposed the establishment of a national environmental protection agency, in addition to existing state agencies.

The bill never passed the Senate after protests from the resources sector and WA Premier Roger Cook, with even the Greens opposing it.

Plibersek says Labor is still keen to establish a federal environmental protection agency, but rather than duplicating approvals processes, she maintains it would speed up permitting.

“Our laws are 25 years old. They’re not fit for purpose, they don’t protect the environment, they’re not good for business,” she told the ABC on April 12.

“We want better environmental protections and faster, clearer decision making. We can do both, but it’s going to take common sense and compromise.”

The same day, WA Liberal Senator Michaelia Cash told reporters the policy would have a “devastating” impact on mining projects.

Incentive schemes under threat

The Coalition has committed to repeal the CMPTI, with Dutton long maintaining that projects needed to be economically viable on their own.

Former WA Nationals leader turned federal Nationals candidate Mia Davies criticised the stance.

“Good policy deserves support,” she told the ABC on April 15. 

Her comments were welcomed by AMEC CEO Warren Pearce, which described the CMPTI as a policy that focused on realising more value from Australia’s minerals.

“Right now, it is the only policy that does so – that’s the truth of it,” he said.

In March’s federal budget, it was revealed that it would not extend the Junior Minerals Exploration Incentive (JMEI).

Earlier this year, modelling by BDO, commissioned by AMEC, found the JMEI had stimulated A$404 million in greenfield exploration activity since 2017, at a cost to taxpayers of A$182.2 million in credits.

The Coalition has vowed to reintroduce the JMEI, pledging A$100 million for the scheme.

“The reinstatement of the incentive is necessary to decrease the risk for junior explorers,” MCA’s Constable said.

“Australia’s vibrant junior exploration sector plays a crucial role in the mining ecosystem by driving innovation, discovering new mineral deposits, and providing the foundation for future large-scale mining operations.”

Strategic minerals reserve

In a statement responding to US tariffs on April 3, Albanese announced that if re-elected, his government would establish a Critical Minerals Strategic Reserve.

Albanese and King have each said more details of the policy would be provided before the election.

King’s office did not respond to requests for comment.

Cook confirmed he was working “closely” with Albanese on the details of the policy.

AMEC’s Pearce suggested a Critical Minerals Strategic Reserve could further incentivize critical minerals exploration and production and create a strategic stockpile that provided greater resilience against global trade measures, and greater influence over critical mineral supply chains.

“Make no mistake. Australia is a critical minerals powerhouse. We can be the reliable supplier of critical minerals to the world, including the United States,” he said.

“Given the ground is moving so quickly, the onus is now on our political parties, to figure out how best to take advantage of this opportunity.”