Baker & McKenzie launches global report examining the challenges and opportunities facing the world’s key mining destinations
Australia, 17 September 2012 – Baker & McKenzie, the world’s largest law firm, has launched a report highlighting significant concerns about the future of Australia’s mining sector.
The Firm surveyed more than 300 senior industry leaders across six key mining jurisdictions – Australia, Brazil, Canada, China, Indonesia and South Africa – and the research suggests that investors in Australia are more pessimistic about the future of mining investment in this country than those investing in the other jurisdictions surveyed.
Of the executives commenting on Australia, 75% said that investing in the mining sector has become more complicated and costly due to factors such as increasing regulatory and environmental obligations, complex and uncertain project development requirements and the rising costs of mine development and operation.
The level of Commonwealth and State Government involvement in the Australian mining industry is also causing concern to investors, with 61% of respondents believing that the Government is too involved in the industry and 72% believing that sovereign risk is on the increase.