The Minerals Council of Australia (MCA) has published a new report that warns Australia’s attractiveness as an investment destination is rapidly deteriorating.

 

The Port Jackson Partners report gauges the extent of the country’s ‘costs crisis’, declining competitiveness and outlines a potential policy framework needed to regain Australia’s position as a premier supplier of minerals.

 

The MCA argues that the country’s historically high terms of trade have masked structural deficits within the economy that threaten Australia’s competitiveness.

 

“Our country’s attractiveness as a place to do business in a highly globalised industry is slipping due to a combination of rising costs, declining productivity and a deteriorating sovereign risk reputation. With commodity prices having fallen from peak levels, complacency and backsliding on economic reform pose a real threat to the minerals sector and to the wider economy,” the Council said in a statement.

 

The MCA says the report demonstrates that Australia is quickly losing global market share to rapidly emerging resource-rich economies, and that a policy framework is needed to repair the ongoing damage.