Making the most of our resources in a post-COVID world The Hon Keith Pitt MP, Minister for Resources, Water and Northern Australia
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hat a year 2020 has been for Australia and around the world.
Right across the nation, the COVID-19 pandemic has had a deep impact on our economy and the way we go about our day to day work and social life.
Even through the global downturn, Australia has maintained a global reputation as a safe, efficient and reliable supplier of the resources needed to keep lights on and build steel for cities and manufacturing all around the world.
That’s because we pulled together during the crisis to keep people in jobs and industry going.
This supports Australia’s economy and our standard of living. Steel and energy will underpin recovery here and overseas. Trade income and royalty revenue ensures governments can pay for schools and hospitals, for roads, for police and the defence of our great country.
We have learned to do things differently. We learned about social distancing and how to adapt when state and international borders closed. As a result, Australian resources are forecast to remain strong as the world recovers from COVID-19.
This also directly provides jobs for about 250,000 men and women. More than one million others are in jobs that rely on the resources industry, its services and supply chains. In this region, resources provide around 37,000 jobs – the lifeblood of a vibrant community.
Australian resources – the men and women on the ground as much as the companies – continue to underpin our economy throughout the COVID-19 pandemic and subsequent downturn, just as it did throughout the turbulent years of the global financial crisis.
There have been difficulties. In particular, coal producers in the Bowen Basin need no reminding of how the pandemic has affected business over the past year.
Meanwhile, Australian resources and energy exports reached a record $290B despite global downturns.
The Bowen Basin is a prime example – with some of
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Australia’s, and indeed the world’s most significant reserves of coal and gas.
BBMC Yearbook 2020
COVID-19 has led to a fall in global coal prices and demand, placing pressure on producers. Some have announced production cuts and temporary closures,
affecting both thermal and metallurgical coal exports. Metallurgical coal suffered sustained declines in the first half of 2020 as COVID-19 impacted on the global steel industry, with steel production curbed in India, Europe and North East Asia. Thermal coal also suffered declines in global demand and price due to a drop in demand for electricity, but is expected to grow again from 2021 as the world and our major trading partners in particular emerge from the pandemic. Overall, however, coal will continue to play an important part in the world’s energy mix. And for now, there is no other way to make steel. The International Energy Agency has said coal demand in developing economies, particularly in Asia, is projected to substantially increase to satisfy demand for electricity and for industrial development. As global energy demand increases, new coal projects will help to meet increasing energy needs. The Australian Government is committed to working with the industry to provide an economic framework and business environment that underpins the future sustained growth of the sector.
