KALGOORLIE (miningweekly.com) – Diggers and Dealers forum chairperson Barry Eldridge has called on the Australian resources sector to address the industry’s image in the non-resources sectors.

“While we congratulate ourselves on the effectiveness of the resources tax lobby, the reality is that I expect around 80% of the Australian public, mainly those living outside of Western Australia and Queensland, to support the concept of a resources tax,” Eldridge told the first day of the Diggers and Dealers conference.

“The perception is of high profits, international raping of our resources by foreign shareholders, and generally an industry that produces billionaires and a culture of high living, to the exception of the average Australian punter who is portrayed by government, and at times, the non-resource focused media, as the underprivileged population base compared to those of us who participate in the resources sector.”

Eldridge pointed out that the reality was somewhat different, with the industry facing significant operating risks, return on invested capital, as well as sustainable capital investment requirements.

“Often, the reality is that there is little left over for the investors and as an industry. I suggest we need to get better at both educating the balance of our community as to how tough it can be to operate long-term in this industry and, also, frankly, we need to ensure that we have strong management skills that maximise the returns we deliver from our investment.”

Eldridge said that the industry should pay attention when resource leaders openly question the return provided to investors, and the industry’s lack of management practices, efficiencies and disciplines.

“We are an industry that relies on access to substantial capital to identify, develop and operate projects and our primary responsibility is to maximise returns to shareholders and fully repay financiers. If we achieve this, we will also ensure that we have a robust industry, pay premium taxation and ensure that we drive economic growth, employment and other opportunities for the broader community.”

He added that as an industry, the resources sector has demonstrated excellence in operating challenging projects, demonstrated major advances in safety practices and, largely through major capital investments, driven Australia’s economic growth in recent years, allowing for the country to be seen as one of the leading economic performers internationally.

“This does not preclude us making sure that we focus on excellence in management and business practices, and addressing criticism of investment benchmarking as experienced during this year. I think this should be a primary goal of our industry,” Eldridge said.

He added that the industry as a whole, had to take full responsibility for delivering the best results for shareholders, with the broader economic dividends flowing through employment, technological advancement, taxation and royalties.

“Get this right and it will be difficult for our industry to be misrepresented, as has happened during this period of federal government; but we must deliver best practice and we also must ensure we educate the broader community about our challenges, opportunities, and the drivers that affect our sustainability.”