On the 23rd of July at Optus Stadium, the WA Mining Club hosted it’s 2nd luncheon for the month – hosting CMEWA’s Chief Executive Officer, Aaron Morey.
He begun his presentation by taking to the stage and providing guests with a real look into Western Australia’s mining and resources industry.
Aaron’s central argument was that Australia’s mining and energy policy needs to adjust to a world that is becoming less integrated, less trusting and more focused on national security. The economic model of the past 30 years – built around efficient global supply chains and relatively free trade – is giving way to greater military spending, trade restrictions and government intervention designed to secure strategically important industries and resources. Aaron argued these changes are structural rather than temporary, and will outlast individual political administrations.
The most important strategic message of Aaron’s presentation was that Australia should aim for more than resilience. His formulation was: “If you want to thrive in the years ahead as a country, it is not enough to be resilient. You must be indispensable.” For Australia, and particularly Western Australia, that means making its mineral and energy resources sufficiently important to other countries that they contribute to the nation’s economic, national and physical security. Aaron argued that Australia sits in an increasingly contested Asian region and needs to remain useful to its trading and strategic partners.
Aaron said WA is unusually well placed to do that because of its reserves of lithium, cobalt, graphite, nickel, copper, rare earths and iron ore. He also singled out gold, which he expects to become more important as an anchor of financial stability in a more volatile world, and bauxite because of aluminium’s importance as a lightweight material.
Aaron finished by returning to his opening quotation from No Country for Old Men: “You can’t stop what’s coming.” His point was that Australia cannot determine whether the world demands more minerals, hydrocarbons or uranium, nor can it dictate the energy-transition pathways chosen by other countries. What WA can influence is the technology used to meet that demand and the development of its own resources. He predicted that major technological solutions, particularly around heavy-haulage decarbonisation, could be developed in Western Australia. With what he described as trillions of dollars of resources still underground, Aaron concluded that the mining sector’s “best days are still ahead of it”.
The presentation then converted to a fireside discussion, where Tim McMillan dove a bit deeper.
When asked about what industry advocacy looks like behind the scenes – specifically who CME calls, how meetings are organised and what happens when government appears unlikely to accept the industry’s position, Aaron said effective advocacy depends on relationships built well before a policy dispute emerges. CME needs established, trusted relationships with federal portfolio ministers, Treasury, the Prime Minister’s Office and industry ministers, as well as the WA Government. Large member companies with established Canberra operations can also contribute. He stressed that CME had not abandoned its position on the CGT issue. More broadly, he said advocacy requires understanding what problem government is trying to solve rather than simply presenting industry demands. CME also brings East Coast officials to the Pilbara because seeing the scale of mining operations can change their understanding of the industry.
Tim then asked a key question – what does success looks like to CME in 5 years time?
Aaron’s measures included higher mining output, more jobs for young people, greater development in the Kimberley, continued competitiveness of industrial assets in the south-west, affordable and competitive energy, a stable industrial-relations environment and improvements to project approvals. He also wants more of WA’s undeveloped resources brought into production and a stronger understanding – particularly on Australia’s east coast – of mining’s economic importance.
The overall takeaway from Aaron’s presentation is that the global economy is becoming more security-focused and resource-intensive, which creates a major opportunity for Western Australia. Aaron’s case is that WA should exploit its mineral and energy advantages, pursue technological solutions to decarbonisation rather than treat energy sources as ideological alternatives, and maintain an investment environment capable of turning resources in the ground into strategically valuable production.
We would like to thank Aaron and The Chamber of Minerals and Energy Western Australia for being a part of our luncheon.
