A report released on Monday by law firm Baker & Mckenzie found that Australia’s mining sector has become more complicated and costly, presenting a greater sovereign risk than lower-cost areas like Indonesia and South Africa, The Wall Street Journal reports.
David Ryan, the law firm's global head of mining, says that reducing the complexity of mining regulation would ensure companies are less likely to spend their capital elsewhere.
"Mining is an industry which involves large, up-front capital investments and long project lives," Ryan said.
"Investors crave certainty, and miners need more certainty regarding the application of taxes and royalties and land use restrictions."
The report found that 61% of those surveyed believed there is too much government involvement in the mining industry.
The law firm interviewed senior mining figures in Australia, Brazil, Canada, China, Indonesia and South Africa for its report.