Australia’s mining sector can play an important role in strengthening the country’s economic resilience amid rising global volatility, but only if policy settings support increased investment, the Minerals Council of Australia (MCA) said on Tuesday.

MCA CEO Tania Constable said on Tuesday that pro-mining policies were critical to helping Australia “muscle up” against sudden economic shocks, while also supporting budget repair, reducing national debt and lifting long-term growth.

“Without a significant increase in investment by Australia’s most capital-intensive and productive industry, the government will struggle to address the federal Budget’s structural deficit and growing debt,” she said.

The MCA’s pre-Budget submission outlines a range of reforms aimed at improving competitiveness, boosting productivity and attracting capital to the resources sector, which Constable described as a cornerstone of the national economy.

However, she warned that Australia’s ability to compete for global mining investment was under pressure, citing high effective tax rates, complex and slow approvals processes, rising energy costs, and relatively high labour and construction expenses.

“Australia’s vulnerability to competition for mining investment… is only growing,” Constable said.

To address these challenges, the MCA has called for stable and investment-friendly policy settings, including a commitment to no new taxes and the retention of the fuel tax credit scheme in its current form.

Additional recommendations include permanent accelerated depreciation measures, targeted investment allowances to bring forward new projects, and reforms to streamline environmental approvals through greater cooperation between federal and state governments.

The submission also highlights the need for large-scale infrastructure development, including a nationally coordinated northern infrastructure corridor linking key regions through rail, road and port upgrades, aligned with defence and private-sector investment.

Constable further pointed to opportunities to leverage AI to improve the efficiency and reliability of regulatory assessments, as well as the reinstatement of exploration incentives such as the Junior Minerals Exploration Incentive.

On the decarbonisation front, the MCA has called for expanded funding support for emissions-reduction initiatives, including the Safeguard Transformation Stream and Industrial Transformation Stream, alongside renewed backing for carbon capture, use and storage.

The industry body also urged government to redirect certain funding towards Indigenous legal services and to explore ways to unlock greater economic participation for Traditional Custodian communities.

Constable said closer collaboration between government and industry would be essential to navigating an increasingly uncertain global environment.

“If Australia’s economy is to muscle up during an era of sudden shocks, the government and the mining industry must work in close partnership,” she said.