ESG

Miners call for plan after McGowan's 'unexpected' border backflip

Western Australian border to remain closed indefinitely

Miners call for plan after McGowan's 'unexpected' border backflip

The border has not been open to all other states and territories since June 2021 due to COVID-19 outbreaks and McGowan last night delayed the planned February 5 reopening indefinitely.

The Association of Mining and Exploration Companies described the announcement as unexpected.

"Nobody in our industry wants to see the health and safety of Western Australians put at risk, and the decision around reopening must continue to be based, in the first instance, on health advice," AMEC CEO Warren Pearce said.

"However, at some point Western Australia must re-open, and we must have a plan for reopening."

Pearce said that while the hard border had kept COVID-19 at bay in WA, it had also created problems that could not be ignored.

"For many in our workforce, this decision has a high personal cost, and means that they will continue to be separated from their families on the east coast, having moved to WA over the last two years to continue their employment," he said.

"We know that this decision will cause distress for many of our workers, who have made significant sacrifices to support their families, and have been critical to supporting our industry and the state's economy."

Pearce also pointed to the severe labour shortages caused by border closures.

"This decision will further delay the ability of the mining industry to attract much needed workers to reinforce existing operations, support expansions, and for the construction of new projects," he said.

"The 5 February reopening date was expected to help address these challenges.

"Now that it appears the border will remain closed for considerably longer, we must now look urgently at introducing new measures to ease these pressures, and safely bring in a wider range of workers."

Pearce said it had been difficult for WA companies with operations and exploration projects outside the state.

"As the timeframe for reopening is now pending review, government can work with industry to ensure the requirements for when we ultimately reopen, are effective, appropriate and available well in advance," he said.

"Our members need to know what will be required by government, to ensure that we are properly prepared and ensure the protection of our workers and the communities we work in," said Mr Pearce.

"Through the review process, the WA Government must clearly articulate the process and rules for re-opening for all industries."

"Western Australia needs a plan for safely re-opening, and our industry needs certainty from Government about how and when this will happen."

The Chamber of Minerals and Energy of WA declined to comment.

Speaking on Friday afternoon, McGowan said he would hold a roundtable with the mining industry next week.

"We're trying to save them," he said, referring to absenteeism of up to 20% in the mining industry in other parts of Australia.

The Chamber of Commerce and Industry WA (CCIWA) called on the government to provide clarity on a new reopening date, as well as the conditions under which businesses should expect to operate.

"The decision puts Western Australian businesses back in a holding pattern, trying to work out when and how to prepare for a reopening," it said.

This week, Rio Tinto, BHP and Northern Star Resources warned of potential production disruptions when the border reopened due to a spike in COVID-19 cases.

"This impact has been delayed but cannot be indefinitely," Argonaut analyst Jonas Dorling said.

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