Bush Summit: Gina Rinehart warns of investment exodus as mining flashpoints intensify

Gina Rinehart has warned that the Albanese government’s industrial relations and environment policies risk alienating Australia’s two largest producers, Rio Tinto and BHP, and could drive the mining giants offshore.

Gina Rinehart at the Bush Summit in Port Hedland on Friday. Picture: Colin Murty

Australia’s richest woman Gina Rinehart has warned that the ­Albanese government’s industrial relations and environment policies risk alienating Australia’s two largest producers, Rio Tinto and BHP, and could drive the mining giants offshore.

The Albanese government has come under fire over the policy changes, amid growing fears from the resources sector that its next wave of investment may be jeopardised.

“Only 20 per cent of the pipeline of major resources projects now get through the increased government tape to deliver development and consequent high paying jobs and more,” Mrs Rinehart told the Bush Summit, hosted by The Australian, in Port Hedland on Friday.

“This is reality. And the consequences should be obvious.”

The mining mogul, whose private Roy Hill iron ore complex competes with Rio and BHP, said her rivals were increasingly looking offshore rather than prioritising Australian investment.

“Rio have been amazing, ­investing productive billions in the Pilbara where it has successful world class ports and gigantic infrastructure, and huge untapped ore resources,” she said.

“Off it goes to invest we’re told $6bn in Simandou, Guinea. What does that do for Aussie high-paid mining jobs, revenue, opportunities? Nothing.”

Her comments came a day after Resources Minister Madeleine King lashed out at BHP, ­accusing it of always “railing against” Labor policies and refusing to work productively with union leaders.

The industry has also been rocked by the recent decision of Environment Minister Tanya Plibersek to block a tailings dam proposed by Regis Resources as part of its $1bn McPhillamys gold mine in NSW, and there are ­ongoing fears about the federal Nature Positive legislation’s impact on approvals processes.

Mrs Rinehart noted BHP was considering marginal investments offshore, highlighting a ­­project hundreds of kilometres into the Arctic Circle. “BHP has invested billions into successful world class railways, towns, infrastructure right here in Port Hedland and in the Pilbara,” she said. “And yet now BHP sees it wise to invest in an extreme weather place it can only operate three months a year.”

She said Australia was missing out on extra revenues and jobs.

“We can’t blame the multi­national companies for doing what they see is in their shareholders’ interests,” she said.

“But why are we pretending all is OK, this doesn’t matter, not recognising these future billions and billions of revenue over decades now won’t be available here? And, why aren’t we doing something about it. Where is the red carpet for the BHPs and Rios, who’ve invested in our country and created and enabled for us Aussies so much? We’ve had huge warnings; isn’t it time to face reality and act?”

Her concerns were echoed by Minerals Council of Australia chief executive Tania Constable, who warned that the federal ­government’s multi-employer bargaining laws threatened to add a major cost hit to the industry.

Minerals Council of Australia chief executive Tania Constable on Friday. Picture: Colin Murty

Assistant Minister to the Prime Minister Patrick Gorman on Friday. Picture: Colin Murty

Three coal miners were compelled by the Fair Work Commission to enter negotiations last week, which Ms Constable described as a dangerous precedent that heightened the risk of strikes and disruption of operations.

She said it was the latest in a line of regulatory imposts that had damaged the industry. “What the government has given to the union movement is unfettered access to our industry again,” Ms Constable told the Bush Summit.

“So what we’re going to see is going right back to where we were in the 1970s and the potential for patent bargaining. That’s a really bad thing for Australia when we’re already seeing major costs being put to this particular industry.”

Ms Constable said issues emerging in coalfields on the east coast could soon be seen in the west.

Asked about the proposed Nature Positive legislation, West Australian Treasurer and Deputy Premier Rita Saffioti warned the Albanese government not to get in the way of state-based project-approval processes in its overhaul of federal environmental laws.

Ms Saffioti told the Bush Summit WA’s approvals already struck the right balance between environmental, social and economic considerations. Patrick Gorman, the minister assisting the Prime Minister, ­defended the proposed changes, telling the summit they were driven by the guiding principles of being both better for the environment and better for business.

“The current laws … aren’t doing what the Australian people want in terms of protecting the ­environment and getting faster outcomes for business,” Mr Gorman said.

He called on the Coalition to help reach a consensus on the new legislation. “I’d rather get this done once, get it done right, and get it done in a way that continues through for a period of time,” Mr Gorman said. “That requires people in other parties, like the Nationals and the Liberals to come to the table to negotiate in good faith.

“I want to see a system that we know has been frustrating people in this state for many years headed towards a more effective system that is better for business and better for our environment. And I think we can do both.”

Ms Constable said it was crucial that approval timeframes for new mining projects were scaled back, arguing that the states were best placed to manage the process.

“If you’ve got environmental approval system, make sure that you have one set of approvals. The states need to have the assessment and approval process, because we already ave that in place,” she said. “If you want better environmental outcomes, create an environment act that is going to get you better environmental outcomes, not just create architecture for the sake of new architecture.”