Australia’s Mining Giants Push for Overhaul of Environmental Approvals
A Call for Reform Amidst Global Competition
Australia’s largest mining companies are urging the government to push forward with reforms to environmental laws, warning that delays in project approvals could hinder the country’s ability to attract investment in clean energy projects.
Geraldine Slattery, the Australian head of BHP, highlighted this concern in a speech to the Melbourne Mining Club, emphasizing the need for a streamlined permitting process. She argued that inefficiency leads to project delays, a problem that governments around the world are starting to address.
“The thing that really matters is the time to market,” Slattery noted, referring to the findings of a 2020 review which showed complex resource projects in Australia can take over 1000 days to approve. This inefficiency, she argued, puts Australia at a disadvantage in the global marketplace, as other countries – like Canada, Chile, and even the United States under both the Biden and Trump administrations – actively seek to shorten approval times.
“I think we need to modernise our permitting system in line with the changing nature of competition,” Slattery said, adding: “This global energy transition will not occur without the minerals Australia provides.”
Mining Giants Back Reform, But Not a New EPA
While mining giants like BHP and Rio Tinto back the need for a more efficient approval process, they express reservations about the government’s proposed solution: a new independent Environmental Protection Agency (EPA). They argue for a system that keeps decision-making power with the government, rather than delegating it to bureaucrats.
Rio Tinto, for example, advocates for “strong national environmental standards” but believes ministerial oversight is essential, ensuring consideration of economic and social impacts alongside environmental gains.
Silently, there is also debate about the future of a section in the recently scrapped Nature Positive bill that aimed to abolish the outdated Land Clearing Permit system.
The government, facing opposition from the Greens and crossbench Senators, halted negotiations on the landmark environmental reforms after facing pressure from West Australian resource sector interests. Labor needs the support of either the Coalition or the Greens to pass these reforms, but green groups remain strong advocates for a robust, independent EPA.
While the government maintains that the reform aims to streamline processes for quicker gains in both nature protection and business growth, critics argue that the new EPA would add bureaucratic burden and further inflate approval timelines, ultimately harming investment in mining projects.
Global Regulatory Landscape
Australia’s current environmental approval process is seen as cumbersome and often creates lengthy delays in major projects. The mining industry argues that simpler, faster systems in other nations are attracting investment and threatening Australia’s competitiveness in the growing clean energy mining sector.
Slattery highlighted the trend of reform in other nations. Canada, for example, has established a federal permitting coordinator and revised its Impact Assessment Act to accelerate decisions while Chile has made regulatory efficiency a central element of its mining policy agenda.
The Biden administration in the US introduced an Energy Permitting Reform Act in 2023, aiming to streamline approvals for major energy projects. This aligns with the Trump administration’s stated commitment to reforming permitting processes, signaling a bipartisan interest in deregulation within the US.
The current standoff in Australia leaves the country’s mining sector, critical to the global energy transition, facing uncertainty.
Without a clear path forward for environmental reform, Australia risks losing its competitive edge in attracting investment and hindering its role in supplying the minerals essential for a greener future.
The future of these crucial reforms hangs in the balance, highlighting the complex challenges
What are the arguments for and against establishing a new independent Environment Protection Agency to oversee mining approvals in Australia?
## Interview: Streamlining Australia’s Mining Approvals
**(Host):** Welcome back to the show. Today we’re diving into the heated debate surrounding Australia’s mining approval process. Joining us is Dr. Emily Carter, an expert in environmental policy and resource management. Dr. Carter, thanks for joining us.
**(Dr. Carter):** My pleasure.
**(Host):** We’ve seen major mining companies like BHP and Rio Tinto calling for reform, citing lengthy approval times that they say are hindering investment. Do they have a point?
**(Dr. Carter):** Absolutely. There’s no denying that Australia’s approval process for mining projects can be incredibly slow. As Geraldine Slattery of BHP pointed out, complex projects can take over 1000 days to get the green light [[1](https://www.australianmining.com.au/on-the-fast-track-to-mine-approvals/)]. This puts us at a disadvantage globally, especially when nations like Canada and Chile are actively streamlining their processes.
**(Host):** So, it’s not just about getting projects off the ground quickly, but also about staying competitive on a global scale?
**(Dr. Carter):** Precisely. The demand for critical minerals for clean energy technologies is only going to grow – and Australia is well-positioned to be a major supplier. But if our approval processes are bogged down, investors will look elsewhere.
**(Host):** The government has proposed establishing a new independent Environment Protection Agency to oversee approvals. What are your thoughts on this approach?
**(Dr. Carter):** It’s a complex issue. While streamlining is essential, there are concerns about removing ministerial oversight from the process. Mining giants like Rio Tinto argue for strong environmental standards but believe ministerial involvement is crucial for considering broader economic and social impacts.
**(Host):** This debate seems to capture a wider tension between economic interests and environmental protection. How do you see this playing out?
**(Dr. Carter):** It’s a delicate balancing act. Australia needs to attract investment and develop its resources responsibly. We must ensure that environmental safeguards are robust and that communities are consulted and considered. Finding a solution that addresses both those needs is the key challenge.
**(Host):** Dr. Carter, thanks for shedding light on this important issue.
**(Dr. Carter):** My pleasure.
