Mining and Heavy Industries

Turnbull urged to work on mining reform

Malcolm Turnbull. Photo: Veni Markovski / Creative Commons

The mining industry has urged new prime minister Malcolm Turnbull to focus on economic and productivity reforms to help Australia’s struggling mining sector through its toughest period in over a decade.

Turnbull ousted Tony Abbott as prime minister in a 54-to-44 leadership vote on Monday night. He had announced his resignation from Abbott’s cabinet, and his subsequent leadership challenge, just hours earlier.

Now the mining industry wants Turnbull to use his advocacy skills and economic know-how to help the mining sector, according to the Business Spectator.

“The minerals sector looks forward to working with the new prime minister and his team to craft an ambitious economic reform and productivity agenda,” Minerals Council boss Brendan Pearson was quoted as saying.

Turnbull, Pearson said, has strong credentials as an economic reformer and has signalled “continuity on climate and energy policy”.

Fears that Turnbull’s climate change stance could bring about another harmful carbon tax were played down by Morningstar resources analyst Matthew Hodge, who also spoke with News Corp.

Hodge reportedly believes big Australian mining businesses are operating at the low point of the commodities cycle, and are struggling due to weak Chinese demand, rather than environmental opposition to coal mines.

“I don’t think we’re in a normal market anymore,” Hodge was quoted as saying. “I think it’s going to be quite unfavourable for a long time and the prime minister doesn’t change the fundamental supply-demand outlook.”

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