Adani automation will move jobs from coal face to big cities, CQU economist predicts

Posted December 06, 2016 07:24:01

Increased use of automation at mining sites such as Adani's Carmichael coal mine will push jobs away from the coal face and into larger cities, a Queensland academic has warned.

It could spell trouble for regional Queensland, with many centres already struggling with high unemployment after the end of the state's mining boom.

Adani is planning to use driverless trucks to transport coal at its new $22 billion mine in the Galilee Basin, among other automated processes.

Mining giant Rio Tinto pioneered the widespread use of remote-controlled trucks in Perth.

Central Queensland University resource economist Professor John Rolfe said automation was increasingly being used in mines, but was not developing as quickly as people might expect.

Professor Rolfe said the new processes would result in more technology and engineering jobs in larger cities, and fewer jobs at the mine face itself.

"I think the real issue now is about trying to make sure more of the supply chain remains in regions instead of coming in and out of capital cities," he said.

"We don't want the Perth experience in Queensland, where Perth ended up being the hub for most of the mining services in Western Australia.

"You always get this flow-through effect [to capital cities], but you want to make sure that it's as little as possible, that as much of the money remains 'sticky' in the regional economies."

Yesterday, final approvals were granted for the Adani project's rail line and it was revealed that the mining company's regional headquarters would be in Townsville.

Adani has claimed that up to 10,000 direct and indirect jobs would be created by the Carmichael project, the bulk of them in the construction phase.

Union pushes for no diesel tax rebate for driverless trucks

CFMEU Queensland mining division president Steve Smyth said he opposed the use of automated trucks in the Adani mine.

"It's all about them cutting costs and trying to save a few dollars at the expense of hundreds of workers who'll miss out," Mr Smyth said.

"That's just a slap in the face for Queensland workers."

The mining company would benefit from a tax rebate on diesel fuel for trucks that had no drivers, he said.

"That company should not be getting a tax benefit or a tax break on diesel fuel rebate when they're not going to have people operating that equipment."

He said the union would lobby all levels of government to end the rebate for driverless trucks.

Hopes Mackay will become FIFO hub

Mackay Mayor Greg Williamson said he expected that his region would be chosen as the mine's operational hub.

"It makes a lot of sense for Adani and any other of the coal mines to use Mackay as the service or operational hub," Councillor Williamson said.

"That means all of the re-manufacturing, all of the initial putting together of the trucks ... the on-going maintenance work that keeps a mine like that alive."

Cr Williamson said he also wanted Mackay to be chosen as one of the city hubs for fly-in, fly-out (FIFO) workers to live in.

Adani is expected to make an announcement on the location of the FIFO hubs next year.

Topics: coal, mining-industry, mining-rural, unemployment, regional-development, rockhampton-4700, townsville-4810