Mining Sector Eyes AI for Job Boom and Faster Approvals
The Australian mining industry is projecting a significant employment surge, directly challenging fears that artificial intelligence (AI) will decimate jobs. Instead, the sector believes AI can dramatically accelerate the approval process for major projects, slashing years off wait times and unlocking billions in economic benefits.
The Minerals Council of Australia is seeking $13 million in the upcoming federal budget to launch a pilot program for AI implementation. They anticipate this initiative will yield a billion-dollar return for the national economy by streamlining regulatory decision-making.
Currently, approximately 26,000 homes across the country are held up in an approvals backlog. The peak body for Australian miners estimates that a staggering $51 billion worth of resources projects are stalled annually due to protracted decision-making processes.
Tania Constable, Chief Executive of the Minerals Council of Australia, stated that AI could effectively halve application wait times by efficiently processing “thousands of pages of approvals.”
“It currently takes about 3.8 years to meet statutory approval timelines, an increase from 2.3 years in 2019 – that’s a 60 per cent jump,” Constable explained. “We believe AI can significantly reduce this. The ultimate goal is faster approvals.”
The journey from project conception to final approval and construction can currently take as long as 16 years. Constable emphasised the need for efficiency at every stage. “You want to ensure every part of the process is as efficient as possible so that a project proponent, an investor, can make a decision that prioritises Australia. We are in fierce global competition, and we want Australia to come out on top.”
Tackling the Red Tape and Delays
Longstanding delays in the approval process have been a persistent source of frustration for the industry. A notable example from last year saw the federal government finally approve Woodside’s application to extend the operational life of the North West Gas Shelf in Western Australia until 2070. This application, however, was initially lodged in 2018.
Recognising the economic impact of these delays, the federal government, following its economic roundtable last August, committed to cutting red tape and expediting approvals through a series of reforms. Two key areas were identified for immediate action, with an AI pilot being one of them.
While the Department of Climate Change, Energy, the Environment and Water has reportedly conducted preparatory work for the AI pilot, no operational tools have been deployed as yet.
Broader Economic Benefits Beyond Mining
The potential benefits of AI extend beyond the mining sector, with housing development identified as a primary beneficiary. The Menzies Research Centre, a Liberal-aligned think tank, has argued that the government will struggle to meet housing demands without adopting such technologies. Furthermore, they highlight the missed opportunity to lower energy prices, with around 5,000 kilometres of transmission lines awaiting construction.
David Hughes, Executive Director of the Menzies Research Centre, warned, “The risk is that Australia will miss out on a lot of this investment that’s funding these major projects because we have one of the more lengthy approval time processes in Australia.”
He elaborated, “We’re talking about big new electricity transmission lines that can help lower power prices, and we’re also talking about 26,000 new homes that are currently part of this backlog. The government really needs to take action now.”
The Shadow Housing Minister, Andrew Bragg, has pledged to hold the government accountable for what he deems a failure to address approval timeframes through environmental reforms.
“What we want to see going forward is the use of technology to approve applications because it’s ridiculous that it takes years, sometimes decades, to get approvals under this federal planning rule,” Bragg stated. He facetiously added, “In fact, the department says that there are at least 10,000 waiting to be approved because a parrot flew over a block of land in 1971. Albo and his environment minister [Murray Watt] haven’t pulled their fingers out.”
AI’s Job Creation Potential in Critical Minerals
While the broader impact of AI on the job market has led to significant redundancies in the tech sector, with Atlassian famously cutting 1,600 jobs, the Minerals Council of Australia maintains a different outlook for mining. They believe AI will foster job growth by accelerating the development of crucial projects.
“There is about $140 billion worth of critical minerals ready to be extracted by 2040, presenting a massive opportunity,” Constable noted. “Delays in approval processes act as a handbrake on the economy, creating severe bottlenecks for job-creating developments. Faster approvals translate directly into more jobs across Australia.”
The Minerals Council has assured that if Treasurer Jim Chalmers approves their funding request for the AI pilot, the final decision on any development application will remain with human regulators – a position also supported by the Menzies Research Centre.
“I think Australians are concerned about the potential of AI taking their jobs, but what we shouldn’t be concerned about is using these technologies to help us do our jobs better and faster,” Hughes concluded.
