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.
Uncertainty over the fiscal impact of new policies, such as the Federal Government’s Minerals Resource Rent Tax (Mining Tax) and Carbon Pricing Scheme (Carbon Tax), threatens the sector’s international competitiveness and investor confidence.
MagNet is working constructively to demonstrate the economic and environmental credentials of magnetite to key decision-makers. There is an urgent need for consideration of the impact of these policy decisions on the ability to secure capital and progress projects.
Our members seek fair and consistent treatment with other mineral sectors.