Dean Smith (WA, Liberal Party, Shadow Assistant Minister to the Shadow Treasurer) Share this | Hansard source

It's been Minerals Week 2026, and I recognise a sector that does not merely talk about national prosperity but that actually delivers it. It is a timely reminder of something that should be front of mind for this parliament: whether Australia is genuinely backing the industry that powers our economy, funds public services, sustains regional communities and underpins our strategic future. Mining is unlike any other industry in this country. It is the engine room of the Western Australian economy. The same is true of the national economy, which I will come to in a brief moment.

In 2024-25 the mining industry supported more than 134,000 jobs, with a further 4,200 in exploration in my home state of Western Australia. WA recorded $220 billion in resources sales and $33 billion in mining and petroleum investment—real jobs, real incomes and real commodities from the Pilbara to the Goldfields, from the Mid West to the Kimberley. A strong resources sector helps fund essential infrastructure and public services without placing additional pressure on households. When mining revenue remains strong it takes the pressure off the government's bottom line, reducing the need for higher taxes or increased borrowing. In 2022-23 alone, the industry paid around $74 billion in taxes and royalties and accounted for 30 per cent of all company tax—more than any other sector in our economy.

On the national stage, mining contributed $212.9 billion to GDP in 2024-25, representing 8.1 per cent of the economy. It employed more than 300,000 Australians and supported around 1.25 million jobs in total. This is nation building by any measure. During Minerals Week in particular, the parliament should recognise this contribution and ask itself whether current policy settings are strengthening or weakening this vital sector to our economy. The stakes are rising, particularly with regard to critical minerals. Western Australia holds globally significant reserves of lithium, nickel, cobalt and rare earths, materials that will shape supply chains for batteries, advanced manufacturing, defence systems and emerging technologies. Employment in the sector exceeded 25,000 direct jobs in 2023-24. This should be our moment.

But there are signs, unfortunately, that we are not fully capitalising on this opportunity. While the Albanese and Cook Labor governments limit their activities to announcements, other nations, particularly China, are moving with both scale and strategic intent. Since 2023, China has committed more than $120 billion into mining and processing projects globally, reducing reliance on Australian exports. Australia cannot afford complacency, yet, under Labor, there is a clear gap between ambition and delivery and an overreliance on the dig-and-ship model. High costs and an increasingly complex regulatory environment mean we struggle to establish competitive downstream processing. This was laid bare last month, with the announcement of the closure of the $1.5 billion Kemerton lithium hydroxide refinery in WA, less than four years after it was opened, costing around 250 jobs.

Labor's industrial relations changes are now having real consequences, particular in the Pilbara. Mining companies are reporting a surge in union activity after decades of stability. BHP's chief executive, Mike Henry, has said that the company is now dedicating resources simply to manage the explosion in right-of-entry requests. Rio Tinto's chief executive, Simon Trott, has warned that these changes are disrupting a model that has delivered productivity and stability in the Pilbara for decades. BHP sites recorded nearly 900 right-of-entry requests in 2025 and a further 164 in just the early months of this year. The Minerals Council chair, Andrew Michelmore, warned of the scale of these risks. At the same time, Australia's productivity ranking has slipped from 17th to 21st globally in just a few years.

These trends matter. Capital is mobile. Labor's nature-positive laws risk introducing further delay and uncertainty. Where Australia becomes slower, more costly and less predictable, investment will shift. In some cases, it is already happening. Without the right policy settings, we are failing to deliver on their potential. Reducing delays, supporting productivity, providing certainty for investment and recognising the scale of global competition must be our priority.