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Opening the conference this morning, Giorgetta said the slump of the past 12 months had highlighted how much Australia relied on resources.
He noted that the Western Australian government had decided not to increase gold royalties but called for certainty.
“Regardless of the outcome, I believe that these discussions have caused and will continue to cause serious damage to Australia’s reputation as a country in which to invest,” Giorgetta said.
“Why don’t governments understand that to continually generate uncertainty that makes investors and financiers restless is detrimental to an industry that already operates in the high-risk category of business?”
Giorgetta also hit out at the large number of approvals companies had to seek, pointing to Roy Hill’s requirement for a whopping 4000 permits.
While Giorgetta acknowledged the challenging times for the industry, he said it wasn’t all doom and gloom, noting the increase in merger and acquisition activity.
“Importantly, in a sign of confidence in the industry, we are seeing companies being able to raise money through equity, something that was much more difficult to do 12 months ago,” he said.
Giorgetta revisited Treasurer Joe Hockey’s budget speech, when he said “Australia, have a go”
“Well there are between 700 and 800 mining companies listed on the stock exchange, and that’s what most of them have been doing for years; having a go,” he said.
“Not all of them will be successful – in fact, the majority of them will not be successful, given the difficulties in discovering a deposit, making it is large enough to be developed and then that the development is financially viable.
“But they all know success is one drillhole away and that’s why they continue to ‘have a go’.”
Giorgetta said it was his expectation that Diggers delegates would leave Kalgoorlie buyoed with the confirmation that companies were still delivering strong results.
Diggers runs until Wednesday afternoon at the Kalgoorlie Arts Centre.
