Invest
Mining boom’s economic win hampered by fossil fuel crown
Australia’s economy is being driven largely by a mini mining boom, despite renewed concerns around the impact mining has on the environment.

Mining boom’s economic win hampered by fossil fuel crown
Australia’s economy is being driven largely by a mini mining boom, despite renewed concerns around the impact mining has on the environment.

KMPG’s Commodity mini boom fuelling growth into 2020 report said that the Australian mining industry has delivered $285 billion in economic benefits nationally, with the price of iron ore alone expected to comprise $79 billion of this value.
KPMG’s global head of mining, Trevor Hart, has noted a combination of cost and volume as driving Australia’s resource sector boom.
“This is not just a story about higher prices on larger production volumes,” he began.
“It is accompanied by increasing investment in mining projects in Australia, together with global expansion in exploration activity,” Mr Hart continued.
Economy v environment
While past success has been measured against key mine safety, profitability and shareholder returns, KPMG noted future measures of prominence will centre around the reduction of carbon emissions, as well as environmental protection and community contribution.
Mr Hart noted that as ESG becomes increasingly complex, “miners of all sizes must have a clear strategy, with measures that identify success”.
“Going forward, these measures will be attached to executive remuneration and reported,” he predicted.
The environment case
The KPMG report came as think tank The Australia Institute labelled Australia as the third-largest fossil fuel exporter in terms of global emissions.
In absolute terms, Australia is the world’s fifth-largest miner of fossil fuels ranking behind China, USA, Russia and Saudi Arabia, but on a per capita basis, Australia is on par with Saudi Arabia, it reported.
The Australia Institute’s climate and energy program director, Richie Merzian, has highlighted that Australia’s large mining operations means its impact is higher than the 1.2 per cent of global emissions reported.
For every Australian, the country mines 57 tonnes of fossil fuel CO2 per year, with the Australia Institute noting this as 10 times greater than the world average.
“Many argue Australia’s emissions are small on a global scale, but this research shows the complete opposite: our domestic emissions are large and our exported emissions are even larger,” Mr Merzian explained.
Mr Merzian considered that Australia has a unique opportunity to address climate concerns by moving away from carbon exports.
“Beyond the economic and national security self-interest in replacing Australia fossil fuel exports with alternatives, Australia has a profound global obligation to reduce emissions,” he continued.
About the author

About the author


Stock market
Markets succumb to jitters as US CPI maintains strength
Following a slight drop of 0.2 per cent in the United States inflation rate, the latest US April consumer price index (CPI) data indicating higher than expected figures has triggered a fall in the US ...Read more

Stock market
Qantas forecasts return to profitability, announces ultra-long flights
Qantas expects its net debt to condense from $5.5 billion at the end of 2021 to $4.5 billion at the end of April following a period of sustained recovery in travel demand. ...Read more

Stock market
Headwinds to outnumber tailwinds in 2022
Headwinds are likely to outnumber tailwinds in 2022 as the world continues to readjust to the post-pandemic era, one expert has said. ...Read more

Stock market
Aussies can now net frequent flyer points by trading stocks
Superhero is looking to sweeten the deal for traders who are excited for the return of international travel. ...Read more

Stock market
Facebook debuts new name
Zuck gets meta. ...Read more

Stock market
2 big questions investors should ask as Australia reopens
Investors need to stop thinking about how to profit from the mineral sector’s struggles, and start looking at when the best time to ride the recovery will be. ...Read more

Stock market
Trading app popularity skyrockets as retail sector booms
In 2021, trading has never been easier for retail investors, meaning the number of users on trading applications has exploded to an all-time high. ...Read more

Stock market
ETF rush predicted to intensify
The Australian ETF sector advanced AU$6.3 billion in August to hit a new milestone, as its popularity among financial advisers soared. ...Read more

Wrapping up an eventful 2021
Listen now

What Omicron means for property, and are units right for first-time buyers? What is equity crowdfunding? Are industry super funds tapping into member funds to save their skins?
Listen now

Will housing affordability improve in 2022? Will buy now, pay later become the norm? Why are Aussies staying in failing super products?
Listen now

Who really benefits from crypto ETFs? How will the RBA respond to rising inflation? Could a mandate help address unpaid super?
Listen now

Stock market
Markets succumb to jitters as US CPI maintains strength
Following a slight drop of 0.2 per cent in the United States inflation rate, the latest US April consumer price index (CPI) data indicating higher than expected figures has triggered a fall in the US ...Read more

Stock market
Qantas forecasts return to profitability, announces ultra-long flights
Qantas expects its net debt to condense from $5.5 billion at the end of 2021 to $4.5 billion at the end of April following a period of sustained recovery in travel demand. ...Read more

Stock market
Headwinds to outnumber tailwinds in 2022
Headwinds are likely to outnumber tailwinds in 2022 as the world continues to readjust to the post-pandemic era, one expert has said. ...Read more

Stock market
Aussies can now net frequent flyer points by trading stocks
Superhero is looking to sweeten the deal for traders who are excited for the return of international travel. ...Read more

Stock market
Facebook debuts new name
Zuck gets meta. ...Read more

Stock market
2 big questions investors should ask as Australia reopens
Investors need to stop thinking about how to profit from the mineral sector’s struggles, and start looking at when the best time to ride the recovery will be. ...Read more

Stock market
Trading app popularity skyrockets as retail sector booms
In 2021, trading has never been easier for retail investors, meaning the number of users on trading applications has exploded to an all-time high. ...Read more

Stock market
ETF rush predicted to intensify
The Australian ETF sector advanced AU$6.3 billion in August to hit a new milestone, as its popularity among financial advisers soared. ...Read more