Keynote Address: 2012 Kevin McCann Energy and Resources Lecture

Australia is entering stormy waters. Indeed, there are all the ingredients of another “perfect storm”. Unlike the confluence of events that precipitated the global financial crisis, this time key factors are of our own making. The “mining boom” is not over. It is different. The underlying fundamentals of demand have not materially changed, just evolved. It is the supply side and Australia’s capacity to compete for global custom that has markedly and acutely changed. Supply has caught up with, even exceeded, demand. Commodity prices are easing, and margins shrinking in the face of escalating costs. As the industry necessarily shifts from an era of price-led growth to volume-led growth, Australia is found wanting, increasingly vulnerable to competition from resource-rich emerging economies.

Speaking Notes For Darwin Mining Club

On behalf of the Chairman, Peter Johnston and members of the Minerals Council of Australia, I acknowledge the traditional owners of this land upon which we meet today – the Larrakia people – and pay my respects to their elders and ancestors. Chair of the Darwin Mining Club Wendy Oldham; Minister Kon Vatskalis; Leader of the Opposition Terry Mills; the President and Executive Director of the MCA’s Northern Territory Division, Bryan Quinn and Peter Stewart respectively, distinguished guests, The Chairman and I are delighted to be here in Darwin and to be invited to speak to you today.