The metals and mining sector is under increasing scrutiny for its supply chain practices, with modern slavery compliance obligations becoming a critical aspect of corporate responsibility and risk management. The introduction of mandatory reporting requirements under the Modern Slavery Act 2018 (Cth) (Modern Slavery Act) has heightened the need for companies in this sector to ensure transparency and ethical labour practices throughout their operations and extended supply chains. However, there is a perception that the relatively light touch of the Modern Slavery Act has failed to produce meaningful outcomes in this regard.
Review of the Modern Slavery Act
On 2 December 2024, the Australian Government released its highly anticipated response to the report of the statutory review of the legislation (Statutory Review). Professor John McMillan AO led the Statutory Review, which commenced in August 2022. After an extensive consultation process, the detailed report was tabled in Parliament on 25 May 2023 (Report).
The Report noted that the Modern Slavery Act has not driven meaningful change for people living in conditions of modern slavery. It made 30 recommendations for legislative and administrative changes to strengthen the modern slavery reporting requirements, including lowering the reporting threshold and imposing due diligence requirements and penalties for non-compliance.
The government’s response
In its response to the Report (Response), the government agreed, in full or in principle, to 25 of the 30 recommendations from the Review. The key recommendations and the government’s responses are outlined below:
Recommendation | Government’s Response | |
Lower the reporting threshold to a consolidated revenue of at least $50 million for the reporting period. | Noted. Not appropriate at this stage. The recommendation will be reconsidered once other key recommendations have been progressed. | |
Expand mandatory reporting criteria to include:
| Agreed in principle. The recommended changes will be considered and the Attorney-General’s Department (AGD) will consult further with stakeholders on the impacts of the proposed changes. | |
Introduce due diligence requirements for reporting entities, including:
| Noted. The AGD will undertake consultation to identify how the Modern Slavery Act could be amended to enhance its due diligence requirements. | |
Introduce penalties, making it an offence for a reporting entity to:
| Agreed in principle, in part. The AGD will consult on the introduction and operation of civil penalties for:
| |
Empower the Australian Anti-Slavery Commissioner (appointed in November 2024) to make a written declaration of a region, location, industry, product, supplier or supply chain that is regarded as carrying a high modern slavery risk. | Agreed in principle. The Government will consult with stakeholders and the Anti-Slavery Commissioner on, and work towards, a model for written declarations, considering international law obligations and potential implications for Australia’s economy, trade, national security and foreign policy objectives. | |
Empower the Anti-Slavery Commissioner to issue guidelines on special issues relating to the reporting requirements. | Noted. It is not preferable for separate official guidance to be issued by the AGD and the Anti-Slavery Commissioner. |
The recommendations for legislative changes to the Modern Slavery Act were supported by administrative enhancements to the Modern Slavery Register and guidance for reporting entities to strengthen the modern slavery reporting framework. Most of these administrative recommendations were agreed to. This includes the AGD’s commitment to consider appropriate amendments to the Commonwealth’s Guidance for Reporting Entities to clarify the meaning of terms such as ‘operations’ and ‘supply chains’ and respond to difficulties recorded by stakeholders during the Statutory Review in joint reporting.
What the Review means for businesses and the mining sector
While the government has not committed to immediate amendments to the Modern Slavery Act, its response and commitment to undertake consultation on most recommendations, and recent appointment of Australia’s first Anti-Slavery Commissioner, signal its intent to do so in the future.
Any legislative reforms will directly impact reporting entities under the Modern Slavery Act and other businesses within their supply chains. These reforms may expand the scope of disclosure or due diligence requirements or impose penalties for non-compliance. Reporting entities must stay informed to ensure ongoing compliance.
As the global push towards decarbonisation and ethical sourcing intensifies, metals and mining companies must proactively address modern slavery risks to maintain their social licence to operate and comply with evolving legal frameworks. Companies should monitor any written declarations made by the Anti-Slavery Commissioner regarding higher risk sectors, locations or suppliers. The additional guidance that the government has committed to issuing will also provide greater clarity for reporting entities, including the application of terms like ‘operations’ and ‘supply chains’ and reporting on a joint basis. This guidance will be particularly relevant for many mining companies with complex corporate structures and extended global supply chains.
In this respect, the United Kingdom Government recently released updated guidance for businesses on how to minimise modern slavery in supply chains and how to report this transparently in modern slavery statements (UK Guide). The UK Guide notes that “businesses must be vigilant to ensure they are not knowingly or unwittingly complicit in modern slavery abuse taking place in their operations and global supply chains”. It offers practical steps for businesses to proactively identify risks and conduct meaningful engagement with workers, trade unions, suppliers and stakeholders to prevent and mitigate harm to workers. The UK Guide reflects best practice and should be considered by all reporting entities, particularly those with operations and supply chains in the UK.
Reporting entities and businesses within their supply chains should closely monitor the government’s consultation on items it has agreed to in principle, subject to further consultation, and any other announcements regarding potential reforms to the Modern Slavery Act. Particularly with the prospect of penalties for non-compliance being introduced, entities should ensure they are meeting all current reporting requirements of the Modern Slavery Act.
Additionally, reporting entities should consider implementing grievance and remediation frameworks, or review the effectiveness of existing remediation frameworks, as there is a likelihood that more detailed reporting on these mechanisms may become mandatory.