PRIME MINISTER S'lATFnMENT
FOREIGN EQUITY IN MINING.
I'HEi PRIME MINISTER, MR WHITLAM, TODAY
RELEASED THE GUIDELINES AGREED UPON BY THE
GOVERNMENT FOR FOREIGN EQUITY PARTICIPATION IN AND
CONTROL OF THE MINING INDUSTRY IN AUSTRALIA.
MR WHITLAM SAID THE GUIDELINES, WHICH
HAD BEEN COMMUNICATED TO THE JAPANESE PRIME MINISTER,
MR TANAKA, DURING HIS VISIT TO CANBERRA, WERE A
DEVELOPMENT OF TIE POLICY OUTLINED BEFORE THE
MINISTERIAL MEETINGS BETWEEN AUSTRALIA AND JAPAN
IN TOKYO LAST OCTOBER. THEY WERE TO BE READ IN
CONJUNCTION WITH THE STATEMENT LAST WEEK ON THE
URANIUM INDUSTRY BY THE MINISTER FOR MINERALS
AND ENERGY, MR CONNOR.
PRIME MINISTER
GUIDELINES FOR FORE~ IGN EQUITY PARTICIPATION TN
AN!) CONTROLO F, TWIIEfr NN-NG ' INDUTR~ Y
i) Development in Austraianir Interests
The Government's basic aim io to ensure that Australia's
mi neral rusourcus are devel~ oped I n such a way as to br Ing niexinuin
be~ nefits to the Australian people, If this objective is to be
achieved, ultimate responsibility for the exploration, development
and processing of minerals must rest with Australians all
enterprises, whether Australian or foreign-owned, engaged in
exploration, development or processing, must conform with the
national interest. The Government will use all of its powers,
including its export and exchange control powers, to achieve
this aim.
( ii) Equity, Control and ownership
The Government desires, as 0 . major objective, to promote
Australian equity in and q9nro. of Its resources and industries,
and maximum Australian ownership compatible with Australia's longterm
capital requirements and its needs for access to markets,
advanced technology and khow-hv ' The Governiment recognises,
however, that many o-f the important existing enterprises engaged
in the development of Australian resources are under foreign
equity control. For this reason, the promotion of Australian
equity in and control of our resources and industries must be
viewed as a longer-term objective.
( iii) Roles for the Public and Private Sectors
The Government ' recognises that private participation in
exploration and development w~ ill continue to be essential. A
maximum level of activity-will be achieved only if there is
participation both by public bodies, such as the PMA and the
AIDC, and private enterprises. The Government recognises also that
participation by companies will be dependent on the prospect of a
return on capi-tal employed which is commensurate with the high
risks sometimes involved.
( iv) Exploration The Government seeks Australian participation in mineral
exploration. It believes, however, that because of the risks
involved and Australia's limited capital resources, it is more
important to secure a high degree of Australian equity participation
at the production stage. The development of any mineral discoveries
will, of course, be subject to approval by the Government in
accordance with these guidelines.
Processing The Government's objective is the maximum level of mineral
processing consistent with the rational use of Australia's resources, I I)
PRIME MINISTER
( vi) Consultations with the Australian Government
The Government expects to be informed of all major
mineral development proposals by Australian as well as foreign
enterprises at an early stage. The point of contact will be
the Minister for Minerals and Energy who will refer to other
Australian Government Ministers matters coming within their
areas of responsibility e. g. the Treasurer on foreign ownership
and on financing aspects, the Minister for the Environment and
Conservation on environmental aspects, and the Minister for Urban
and Regional Development on urban and regional aspects. This will
assist the Government in ensuring that maximum benefits accrue
to the Australian people as a whole.