How Australia’s Mining Sector Saved The Country Amid Covid-19-Driven Slowdown

Australia’s fight with the Covid-19 pandemic started on 25th January 2020, when the first positive case was identified in Victoria. Almost all the facets of life were gradually affected and the economy also suffered a setback with this development. Many sectors were forced into closure and the mining industry too was looking down the barrel, before the Australian government declared mining work as essential, much to the relief of thousands of workers associated with the sector. Although most of the mines operating across Australia are located in remote areas, the operators were required to change the working strategy to meet the safety guidelines in the wake of a deadly pandemic.

Queensland became the first Australian state to declare a public health emergency, but the authorities were quick to understand the importance of allowing the mining sector to keep functioning. Since the industry provides jobs to many people, especially in Queensland, the ministers aimed to make viable decisions to help the citizens keep their livelihood. Some of the key mining projects like Glencore Holding, Adani Carmichael mine, Fortescue Metals, etc., operating across different states focused on aligning the day-to-day operations as per the new guidelines issued by the government to contain the spread and protect the workers from the deadly virus.

On the other hand, miners such as BHP and Rio Tinto introduced several programs to support the mining industry holistically. Subsequently, all the miners were allowed to source equipment to continue the operations. The decision helped more than 250 companies join forces and bridge the gap to streamline the operations even during difficult times. The authorities realized that the input of services and supplies was important to support jobs, exports, families and communities, other than the small and mid-sized businesses along the humongous supply chain.

Typically, mining projects feed a large supply chain of allied industries whose survival is linked to the continuity of operations. These allied businesses employ a massive number of skilled workforce and create economic value of related sectors such as designing, construction, transport systems, loading facilities, etc.Majority of them are fully or partially dependent on the operations of the mining industry. Thus, it was important for the sector to sustain the processes even during the pandemic and this is where the industry cushioned the economy of Australia during the crisis, as per David Boshoff, head of the Adani Carmichael mine project.

In the recent times, the mining sector in Australia witnessed a boom in activities, while also recording growth in job openings. The coal industry in Queensland saw a 40 per cent rise in jobs during the last quarter, owing to the early intervention and planning of government, followed by the operational efficiency of the sector mitigating the impact of the pandemic comprehensively. The introduction of temperature measurement at mine site entries, improved separation procedures, etc., also lifted the spirits among the workforce.

From infrastructure and technologies that drive mining companies to corporate offices, the pressure exerted by the stringent guidelines of Covid-19 has been unprecedented. However, the mining industry deserves a lot of credit for adopting a positive approach to come out unscathed from a difficult period. Queensland Resources Council CEO Ian Macfarlane acknowledged its contribution when he said that the resource industry will continue to play its central role in the economic productivity of the state and the lives of all Queenslanders during the turbulent times. The role of technology to accelerate the industry’s digital transformation in many ways cannot be undermined either. The mining companies invested in technology projects despite the devastating impacts of the pandemic.

A number of mining companies have taken the lead to work with their supply chain for the protection of communities around their operations during Covid-19. The sector has been historically resilient and adept at managing crises and wasn’t forced into starting with a blank sheet. The industry was quick to alter the rosters and implement world-class testing regimes, along with other measures to contain the fast-spreading virus. It has continued to operate through the pandemic without having any negative impact on the operations.

Mining companies have been under enormous pressure off late to operate in sync with more stringent standards laid down by the government. New coal mines like the Adani Carmichael mine, Olive Downs mine, among others have gone through a rigorous process to attain approval to commence operations. The community sentiment, exacerbated by global civil rights groups has greater implications for employment and acknowledgement in this sector. However, the mining sector is experienced and well-equipped to support the programs for the welfare of the communities.

According to the Australian Bureau of Statistics, the country’s local mining industry led the economic recovery amidst the COVID-enforced lockdown. The decision to continue the operations also saved 1.1 million jobs associated with this industry, enabling the sector to pay taxes and royalties to assist programs for workers and small businesses, stated the report.

The risks created by the Covid-19 pandemic are broad and varied. The need of the hour is to measure the long-term benefits and move towards a comprehensive strategy. Collaboration has been the key to drive growth while focusing on keeping the operation aligned. The complex nature of mining operations requires a special commitment. From the iron ore industry to the copper and thermal coal sectors, along with gold companies, the mining industry in Australia has strengthened the country’s resource and energy sector.

Although it would take a whole-hearted effort to reach the pre-covid-19 position, the mining sector in Queensland has particularly set the right benchmark for other states to follow. Unemployment has been steadily decreasing in the state and much of the credit goes to the mining sector with local projects like Kevin’s Corner Coal project, Alpha Coal project, Adani Carmichael mine, Galilee coal project, among others, playing a significant role in this regard. Apart from Queensland, another major contributor has been New South Wales, boasting some of the key mining projects in Australia.

When it comes to the Iron ore industry, the impact created by new mines that were commenced during the last financial year, especially in Western Australia was significant. Rio Tinto, BHP Group, Fortescue Metals, etc., are some of the companies holding the largest share in Iron ore mining in Australia.

On the other hand, Australia’s copper segment, backed by rising copper prices and export volume showcased the ability of the sector to combat the pandemic. Glencore Holdings, Newcrest Mining Limited, etc., are some of the companies with the largest market share in copper ore mining in Australia that played a crucial role in the last year to improve employability. Some of the key mining projects like the Adani Carmichael mine and Galilee coal project have also paved the way for an influx of additional workforce, as both the projects required great research and innovation to maximize productivity, efficiency and sustainability. Since Australia has the fourth-largest share of coal reserves in the world, the increasing influence of Australia’s coal industry on other businesses is a given along the supply chain.

Talking about the development, Keith Pitt, Minister for Resources, Water and Northern Australia, said that the forecast shows how well the resource sector has managed the challenges of the Covid-19 pandemic. He also said that the reports are a testament to the resilience and strength of Australia’s resources and energy sector.

Unlike other countries, Australia is more dependent on natural resources, especially the mining industry to boost its economy. The authorities were quick to realize this fact and create a conducive environment for the sector. The response of dozens of companies operating across the vast mining industry, including Glencore Holdings, Newcrest Mining Limited, Adani Carmichael mine, BHP, Rio Tinto, among others was also exceptional to lead the country’s economic recovery and limit the impact of the Covid-19 pandemic, before making a full-fledged comeback.

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