Professional standards in a changing world

In a complex global environment, professional leadership in the resources sector has never been more important. 

AusIMM represents a global professional community with a shared commitment to technical excellence, ethical practice and public benefit. We underpin an industry operating at the intersection of commerce, social and environmental performance, and – increasingly – public policy.

Around the world governments are responding to a sustained state of disruption, with policies designed to rebuild domestic industrial capability, secure energy supplies and fortify trading and strategic relationships with new and existing partners. This renewed focus on ‘trusted relationships’ and ‘secure supply chains’ is leading to policies that rely for their success on mining, materials and mining expertise.

It is timely for resources professionals to be aware of this environment and reflect on the implications for individuals, companies and communities to ensure we deliver social and economic benefit through our work.

What’s happening?

Minerals are the centrepiece of government efforts to re-route global production networks and advance geopolitical and trade interests.

To look at Australian rare earths as an example, since 2021 eight projects have received $3.7 billion in funding from domestic government agencies and a further $5.2 billion from foreign allied governments, even though the global trade in rare earth elements is worth only $4 billion per annum. Governments have funded about 90 per cent of Australian rare earth capital costs, and investment is channelled through government rather than private firms.

The Federal Government has made tax credits of 10 per cent available for processing and refining, offered concessional finance, allocated $1.2 billion to establish strategic reserves, and taken a direct role negotiating offtake agreements for Australian miners.

Minerals have also been the primary bargaining chip in a range of trade developments globally, extending well beyond the much-discussed field of critical minerals. Our major commodity export, iron ore, is one example, with China’s state-backed steel cartel negotiating lower prices and offering suppliers payment in Yuan and Renminbi rather than the traditional US dollar.

Government investment now accounts for more than 75 per cent of the estimated capital costs of the Simandou iron ore project in Guinea, and mineral supplies have formed the anchor for new trade agreements between the US, China, Japan, Korea, the United Kingdom, European Union and Australia. Critical minerals have been the key sticking point in various trade and diplomatic disputes, particularly those involving the US.

Minerals and mining now play an outsized role in industrial and security strategy, with investments no longer driven by commercial or economic considerations alone.

What does this mean for professionals?

Our sector’s contribution to advancing the public interest has arguably never been clearer than it is right now. While delivering sustainable value to shareholders and communities continues to be central, alongside our role as custodian of environmental and cultural values, the key change comes from the increased interest and expectations of government.

This creates conditions where actual or perceived pressure may be placed on professionals to align technical, managerial and advisory decisions with government priorities. In practice, this may manifest in several ways, including:

• Requests to accelerate project approvals, design sign‑off or production schedules in line with government agreements, alliance commitments or stockpiling objectives.
• Expectations that professionals downplay, defer or narrowly frame environmental, social, safety or heritage risks to meet policy‑driven timelines.
• Circumstances where policy direction is presented as a substitute for professionally informed operational decisions, or where dissenting advice is discouraged.
• Tensions arising from conflicting obligations between host‑country laws, sponsoring‑government expectations, and professional standards.

Our understanding is not that this sort of pressure has been applied by state and federal governments in Australia. This context, though, serves as a reminder of the responsibility we all have as AusIMM members to uphold and champion the highest standards of technical, professional and ethical practice in our work around the world.

We have a renewed opportunity to demonstrate our contribution to the public interest by providing essential expertise in this complex environment, and we also need to take care of the risks and potential impacts of actual and perceived government involvement.

What’s different about the current era?

Global politics is now a priority for governance and risk management, and a key driver of investment and capital allocation in the global resources sector. For professionals, being aware of this environment and understanding how it can impact our daily work is important. This ensures we not only manage risk but also position our local sector as a hub of expertise, a magnet for global capital and a trusted partner delivering projects that advance the public interest.

In practice, we can do this by:

• Advocating for the highest standards of technical excellence and professional practice with colleagues, community and government stakeholders.
• Engaging through AusIMM’s community to remain up to date with the latest developments across the global sector and the implications for professionals.
• Assessing geopolitical risks as part of operational, project and broader organisational governance processes.

If the resources sector has never been more central to advancing public interest, the professionalism and standards of our community have never been more relevant.

Our leadership will ensure the sector continues to deliver for all stakeholders in a fast-changing global environment, where mining expertise becomes as important as the minerals and materials we produce.