Mining Sector Eyes AI for Employment Boom and Streamlined Approvals
The Australian mining industry is signalling a departure from the widely held fear that artificial intelligence (AI) will lead to widespread job losses. Instead, the sector is proposing that AI could be a catalyst for significant employment growth, while simultaneously slashing approval wait times for major development projects. The Minerals Council of Australia is seeking $13 million in the upcoming federal budget to launch an AI pilot program, which it forecasts could deliver a billion-dollar boost to the national economy by enhancing the efficiency of regulatory decision-making.
Currently, approximately 26,000 homes across the country are entangled in a frustrating approvals backlog. The peak body representing Australia’s miners estimates that a staggering $51 billion worth of resources projects are stalled annually due to protracted decision-making processes.
Tania Constable, the Chief Executive of the Minerals Council of Australia, believes that AI could dramatically reduce application wait times. She suggests that by employing AI to meticulously analyse “thousands of pages of approvals,” the current statutory approval time of about 3.8 years – a stark increase from 2.3 years in 2019 – could be significantly shortened.
“We think that can be pared right back with the use of AI. The endgame is faster approvals,” Constable stated. She highlighted the extensive timeline for projects, noting that it can take around 16 years from initial concept to final decision and commencement of construction. “You want to make sure that every part of the process is as efficient as you can so that a project proponent, an investor, can make a decision that puts Australia first. We’re in a major competition with the rest of the world and we want Australia first.”
The delays in approval applications have been a persistent source of industry frustration for years. A notable example includes Woodside’s application to extend the operational life of the North West Gas Shelf in Western Australia until 2070. While ultimately approved by the federal government last year, the oil and gas giant had initially lodged the application back in 2018.
Following its economic roundtable in August of the previous year, the federal government committed to cutting red tape and expediting delays through a series of reforms. Two immediate areas for action were identified, with an AI pilot program being among them. While the Department of Climate Change, Energy, the Environment and Water has reportedly conducted preparatory work for such a pilot, no operational AI tools have been deployed to date.
Broader Benefits Beyond Mining
The potential benefits of deploying AI extend beyond the mining sector, with housing development identified as a primary beneficiary. The Menzies Research Centre, a Liberal-aligned think tank, has warned that the government will struggle to meet housing demands and unlock cost-saving energy initiatives if it fails to embrace this technology. The centre points to the substantial number of transmission lines, approximately 5000 kilometres, currently awaiting construction.
David Hughes, Executive Director of the Menzies Research Centre, expressed concern over the potential loss of investment. “The risk is that Australia will miss out on a lot of this investment that’s funding these major projects because we’ve got one of the more lengthy approval time processes in Australia,” he explained. “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 which 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 its perceived inaction on improving approval times 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 asserted. He added facetiously, “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.”
This push for AI in the mining sector comes at a time when the broader technology industry is grappling with the implications of AI, with significant job cuts reported by software companies. Notably, Mike Cannon-Brookes’ company, Atlassian, recently announced the slashing of 1600 jobs.
AI as an Employment Enabler
In contrast, the Minerals Council of Australia maintains that AI adoption will foster job creation within the resources sector by accelerating the progress of major developments. Constable highlighted the immense opportunity presented by critical minerals, with an estimated $140 billion worth ready for extraction by 2040.
“Delays in approval processes are a handbrake on the economy, creating severe bottlenecks for job-creating developments. [Faster approvals] means that we get more jobs occurring all the way around Australia,” Constable stated.
The Minerals Council has assured that if Treasurer Jim Chalmers approves their funding request for the AI pilot, the ultimate decision-making authority for any development application will remain with human regulators. This stance is 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.
The Minerals Council of Australia believes AI can significantly speed up the approval process for major projects.
The mining industry is seeking government funding to pilot AI technologies.
Delays in project approvals are estimated to cost the Australian economy billions annually.
The Minerals Council CEO Tania Constable is advocating for AI implementation.
The Menzies Research Centre supports the use of AI to overcome regulatory hurdles.
