As mining investment falls from historical highs and non-mining investment struggles to pick up the slack Australia’s resources sector was watching this year’s budget closely.
Minerals Council of Australia chairman and MMG CEO Andrew Michelmore told a mining conference in Canberra today there were two sentences in Treasurer Joe Hockey’s speech which caught his attention.
1. “An amazing 80 per cent of all investment in the recent mining and resources boom has come from new foreign investment in Australia.”
Michelmore said it’s a reminder to the sector to be upfront when highlighting foreign investment in the sector.
“It’s something I think about constantly – as a CEO of a majority Chinese-owned company, listed in Hong Kong, but with its headquarters in Melbourne,” he said.
“And I must say the Prime Minister’s visit to North Asia in April struck the right note in affirming (especially in China) that Australia is ‘open for business’.”
2. Mining and resources represent about ten per cent of our economy but two per cent of our employment.
With mining generating about 10 per cent of GDP, Michelmore said this sentence reminds the Australia how important the industry is to the economy.
“Mining generates value added of more than $500,000 for the economy from every worker employed,” he said.
“That’s the best return on labour in the country, something we should value as our population ages, workforce participation declines and demands on government increase.”
NOW WATCH: Briefing videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.