The Australian Resources & Energy Employer Association has underscored the strength of the mining and energy industry in a new report identifying more than 100 new projects creating almost 27,000 jobs over the next five years.
Resources and Energy Workforce Forecast: 2024-2029 breaks down the estimated labour required to operate new, expansion and restarted mining and oil and gas projects.
The report shows there are 107 major resources and energy projects in Australia’s investment pipeline – either already committed or considered advanced – expected to enter production between the second half of 2024 and end of 2029.
These projects are worth about $131 billion and are forecast to drive demand for around 26,810 new production-related jobs.
While estimates are slightly down on last year’s 2023-2028 report (103 projects worth $142 billion and 28,000 jobs), the consistency reported across AREEA’s past five editions demonstrates the ongoing attractiveness of Australia as a place for major resources project investment.
Mining commodities retaining their traditional strengths include coal (13 projects for 4,836 workers), iron ore (eight projects for 4,495 workers), gold (13 projects for 2,830 workers) and critical minerals (14 projects for 3,078 workers).
Meanwhile, energy industry continues its mini-investment boom, with 19 prospective projects that could drive demand for 3,410 new operating phase employees by the end of 2029.
However, AREEA Chief Executive Steve Knott AM warned the strength of Australia’s major project investment pipeline was threatened by the Albanese Government’s workplace and environmental agenda.
“Iron ore, coal and gas saw Australia’s export earnings reach a record $466 billion in the year to June 2023. The industry also contributes over $70bn annually in taxes and royalties – and there is a great opportunity for this to increase,” Mr Knott said.
“Put simply, the first back-to-back Commonwealth surpluses in 16 years were not delivered by a magic turnaround in our nation’s economic management, they were delivered by Australia’s resources and energy sector.
“Without the contribution of Australia’s mining and energy projects, vital services such as Medicare, the NDIS, hospitals, schools and aged care would be deprived of critical investment.
“Yet Australia is on the threshold of a bizarre new era, where regulatory red tape, activism and unproductive workplace relations policies threaten the next wave of revenue and job-creating resources and energy projects.
“Approvals for major ventures such as the McPhillamys gold mine in New South Wales – which offered 1000 jobs (construction and production) and had the full support of the local community – are being pulled from underneath investors at the eleventh hour.
“Several multi-billion-dollar LNG projects, offering much needed domestic gas supply and further export earnings, are being frustrated by continuous environmental and cultural heritage lawfare.
“Despite the Albanese Government suggesting the sector wouldn’t be impacted, miners are being dragged into multi-employer bargaining and face the risk of industry-wide strikes.
“Thousands of workers will soon be paid according to bargained terms and conditions of other businesses, and unions have been given a legislated leg-up to force themselves into workplaces and entire industries that have long since left them behind.
“All Australians should be concerned about what that means for their livelihoods and lifestyles.
“AREEA’s report shows Australia remains an attractive place to invest in new resources and energy projects – for now. We cannot afford to stifle business and strangle the golden goose.”
Resources and Energy Workforce Forecast: 2024-2029 reports that while the major project pipeline remains strong, the sector in May 2024 directly employed 287,600 people, which was 35,300 or 11 per cent fewer than the historic high (322,900) of May 2023.
Most of the losses were in Western Australia, with a decrease of 31,000 employees (-17.6 per cent) from 175,900 in May 2023, and the industry’s lowest WA direct workforce since 2021.
Nonetheless, WA remains the powerhouse of Australia’s resources and energy industry, with 48 major projects expected to increase the workforce by 11,065 workers by 2029.
Meantime, NSW has cemented its position as the nation’s second-most attractive destination for resources and energy investment capital. The report shows 18 projects are forecast to create demand for 5,152 new production employees in NSW by the end of 2029 – an increase of 800 on last year’s figures and over 1,600 more than Queensland’s current projections.
“That data shows Queensland is slowly but surely losing its investment edge and being well overtaken by NSW. In 2022, this report forecast 5,560 new jobs in Queensland’s major project pipeline. In 2023, the figure was 4,470, and this year, just 3,527,” Mr Knott said.
“There can be no doubt the Queensland Government’s intransigence over its decision to massively increase coal royalties has taken a toll on investor confidence in the state across the sector.
“It’s yet another signal to all governments that ill-advised and short-sighted policy settings can seriously risk the strength and significant contribution of Australia’s resources and energy industry.”
Find the report here.