Australia’s richest person, Gina Rinehart, says the cost of doing business in Australia is setting local miners up to be some of Australia’s biggest competitors.
Rinehart told The Australian that miners were pursuing investments in countries with lower costs.
“For instance, Rio Tinto, which has been in Australia for decades, and made most of its revenue from Australia, is now arranging multi-billions of dollars of investment for a major resource project with substantial infrastructure in Guinea in Africa.
“When that’s operating, it will bring billions of tonnes of ore on to the market to compete against Australia, and push down commodity prices. Too few seem to recognise the impact this will have when we are competing with lower-cost countries and how it will hurt Australia for decades”, Rinehart said.
Rinehart noted that people don’t buy Australian exports because they like Australians, but because that “They’re only going to buy the products if we remain commercially competitive, cost-competitive.”
Competition and productivity are the big questions for the economy, for business and for workers in the years and decades ahead as we strive to sustain our standard of living.
But Rinehart also took a pop at her critics and those of the mining industry in general saying:
(As for) the critics of business, the mining industry and profits, I don’t see them pegging tenements as all Australians can, (putting) their hands up offering to work hard, take significant risks, and pay the salaries of the thousands of employees and those in related businesses I create jobs for in Australia, or pay for the thousands of other jobs the mining industry provides for.
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