MagNet’s members offer the prospect of employment and economic growth for Australia by developing a high-quality product in response to growing global demand for steel. Together, MagNet member WA projects alone represent some $21 billion in initial capital expenditure, an estimated 19 000 new jobs, more than $11 billion in annual export revenue and up to $800 million in annual state royalties (see Facts & Figures). The purity and chemical make-up of magnetite concentrate offers the additional benefit of lower carbon emissions over the steel production life-cycle.

Strong investor support from Japan and China, the driving force of global steel production, signals the potential contribution of Australian magnetite to world iron ore trade and, in turn, Australia’s prosperity. Sustained demand from key Asian markets underscores this potential.

Yet at a time of growing demand for steel-making commodities and increasing environmental awareness, Australia’s magnetite producers face unexpected challenges at home.

Existing Federal Government Legislation in relation to the Minerals Resource Rent Tax (Mining Tax) and Carbon Pricing Scheme (Carbon Tax), threatens the sector’s international competitiveness and investor confidence.  MagNet welcomes the policies of the recently elected Coalition Government to repeal both these taxes as part of their election pledges.  The creation of an Emissions Reduction Fund and Direct Action Plan have been released for public consultation and MagNet will participated in these reviews.  The implementation of these policies is not yet finalised.

MagNet is continuing to work constructively to demonstrate the economic and environmental credentials of magnetite to key decision-makers.  Both State and Federal Governments’ have been briefed on the impact of these policy decisions on the ability to attract investment, secure capital and progress projects.

Our members seek fair and consistent treatment with other mineral sectors.