Up to 33,000 jobs at risk due to new taxes, bargaining changes, mining companies say

New taxes and proposed multi-employer bargaining changes may imperil $77bn worth of projects, resource giants warn.

Resources giants say projects underpinning the federal government’s Powering Australia energy transformation plan will come under threat if miners are hit with new taxes, industrial relations rules, emissions and environmental restrictions. Picture: Cameron Laird

Mining companies have warned that up to 33,000 jobs are at-risk from new taxes and multi-employer bargaining changes, with critical minerals, lithium, copper and other resources projects valued up to $77bn imperilled by increasing investment uncertainty and contagion.

Resources giants have told the Albanese government that projects underpinning its Powering Australia energy transformation plan will come under threat if miners are hit with new taxes, industrial relations rules, emissions and environmental restrictions.

Senior industry sources said a “slow down” in critical minerals, lithium, cobalt, nickel and copper projects would put the government’s 43 per cent emissions reduction by 2030 and net zero emissions by mid-century targets in jeopardy.

Facing a re-run of the 2010 mining tax campaign and calls from coal, gas and iron ore producers to rule-out new levies and multi-employer bargaining, Treasurer Jim Chalmers on Sunday said it wasn’t the government’s “preference” to impose a temporary tax on thermal coal and gas.

Anthony Albanese, who returned from overseas on Sunday, will convene Cabinet meetings this week in Canberra to finalise the government’s pre-Christmas plan to support manufacturers and households facing massive hikes in power bills.

“Our priority is on the regulation side rather than on the taxation side. But at this stage of the process, it makes no sense to take options off the table until or unless we can make progress on the regulatory side,” Dr Chalmers said.

Dr Chalmers said the government was pursuing a regulatory solution, anchored by a mandatory gas market code of conduct that includes pricing considerations. The Prime Minister also left the door open to a cap on gas prices.

Minerals Council of Australia chief executive Tania Constable, backed by member companies including BHP, Rio Tinto, Whitehaven and Glencore, said a mining tax would “slow down Australia’s energy transformation”.

The mining sector has identified 140 projects subject to pre-final investment decisions which could be at-risk from tax and IR changes, including 46 critical minerals projects.

Across the country, there are about 200 major minerals projects currently in the pipeline over the next five years, with an estimated value of between $73 and $95bn. The MCA warns that 22,000 construction jobs and more than 11,000 ongoing jobs could be at-risk.

Ms Constable said “to build the amount of renewable energy technology required to meet our emissions targets, Australia needs more critical minerals out of the ground”.

“More lithium for batteries, more copper for solar panels, and more cobalt for electric vehicles. Not more uncertainty and risk that will simply chase away investment from our shores, at such a crucial hour,” Ms Constable said.

“By targeting the mining industry, the federal government risks undermining its own climate ambitions.

“Combined with a rushed industrial relations policy that will lead to more strike action, this dual attack on mining will put countless mine developments at risk of cancellation or delay, at a time when we need more investment in our economy, and more jobs.”

The lack of clarity over taxes, multi-employer bargaining, environmental planning changes and a crackdown on heavy emitters has sparked a national campaign by cashed-up miners and exporters concerned about investment and sovereign risk impacts.

The campaign was launched after The Australian revealed the government was considering a proposal for a new temporary tax on thermal coal and gas to help subsidise skyrocketing electricity bills.

Dr Chalmers on Sunday said “we are conscious of our international relationships, we are conscious of investment in the industry” after mining companies and Japan – one of the nation’s biggest LNG and coal export markets – raised concerns about regulatory and tax changes.

Greens leader Adam Bandt will this week ramp-up pressure on the government to impose a windfall profits tax on energy companies and continue his push to end subsidies for oil, gas and coal.

Mr Bandt and resources spokeswoman Dorinda Cox will on Monday move a disallowance motion in the Senate to block federal money for a new Victorian gas project.

The motion targets a $32m commercial loan provided by the Morrison government to GB Energy to accelerate the Golden Beach gas production and storage project.

Mr Bandt said “Labor can’t keep backing new coal and gas projects”.

“The big gas corporations are making giant profits and the public shouldn’t be on the hook for a new gas project that will make the climate crisis worse,” Mr Bandt told The Australian.

Ms Constable said resources companies need “certainty to make long-term investment decisions”.

“Why would companies risk investing in Australia if the rules keep changing, long after investment decisions have been made?”

The MCA, NSW Minerals Council and Queensland Resources Council last week launched an advertising blitz based on the $22m mining tax campaign, which led to the demise of Kevin Rudd.

“The decision to emulate the opening salvo of the 2010 mining tax campaign was deliberate and calculated,” a senior NSW mining source told The Australian.

“Preparations are well underway to escalate things if necessary in the weeks ahead. It’s hoped the government learns from past mistakes and rules out a tax, which will do nothing to bring down power prices but would significantly hurt the Australian economy.”