News @MM Resources exports on track to reach almost $300bn Resources and energy exports are on track to reach nearly $300 billion this financial year, $18bn more than the previous record despite the impact of the coronavirus. Some of Australia’s largest resources companies and industry groups together with the Australian government have united during over discussions on how to deal with the coronavirus outbreak. Resources, water and Northern Australia minister Keith Pitt said it was important for companies to prioritise workers’ health and safety and keep jobs to put the industry in a good position for recovery. “It’s critical that resources operations continue, and new projects commence as planned wherever possible and we are working with resources companies to ensure they can get workers in and out of regional and remote areas in accordance with health and
The government has committed to working with resources companies to ensure businesses continue to operate despite the COVID-19 situation. safety requirements,” he said. The government has committed to working with mining, oil and gas companies to ensure businesses continue to operate under changing circumstances. “The resources sector has already shown great resilience to be in such
a position of strength as we head into this current health crisis,” Pitt said. “It will be key to Australia’s economic recovery once the global COVID-19 pandemic has passed.” Round table participants included the Minerals Council of
Australia, Australian Petroleum Production and Exploration Association (APPEA), National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA), BHP, Rio Tinto, Newcrest, Woodside, Shell, Santos and Senex.
Renewed vigour needed for local manufacturing supply chains Minister for Industry, Science and Technology Karen Andrews has mentioned in an interview with a radio station that the government will be strengthening their investment towards the manufacturing sector and giving it more attention as part of the pandemic response. The COVID-19 crisis has brought renewed vigour to the calls to support Australian made products. The federal and state governments have been supportive of these with Australian manufacturers like Detmold and Grey Innovation responding by producing additional personal protective equipment (PPEs). Her comments come in the wake of a shortage of a number of essential goods which Australia has been traditionally reliant on like the PPEs. She mentioned that supply chains need to be examined closely to help out the targeted local manufacturing 12 MAY 2020 Manufacturers’ Monthly
base in addition to saying that it is not sustainable for the country to rely on foreign supply chains for these products. “I think what the coronavirus has proven to us is that it’s wrong for us to be totally reliant… on supply chains that come from overseas. “The issue has been, in some cases getting access to the input materials that they need – so that’s a problem and we need to make sure that we address that as well as making sure that we don’t just retain a strong manufacturing sector – but build it.” Andrews was mindful of the fact that in terms of cost, it would be hard to compete against overseas products, hence there is a need to play to the strengths that the local manufacturing markets are capable of. This is because of the access to raw materials and Australia’s high wage economy will create significant
hurdles for the industry in this respect. Following discussions with the local manufacturing sector last year, she said that “we have to start looking at what our niche areas are, where we have demonstrated capability, where we can build on that.” Locally produced pharmaceuticals,
as an example, was as important to produce in Australia because having ample stock is important. “We need to work with our pharmaceutical sector to see how they can pivot and how they can start producing different medicines, different pharmaceuticals if need be,” said Andrews.
Australia has been traditionally reliant on essential goods like PPEs which are manufactured overseas.
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