A workforce dominated by soft, satisfied idealists is ''pissing away'' Australia's position of economic strength and taking the nation backwards, according to the head of a Chinese-controlled mining company with multiple projects in Australia.

Andrew Michelmore, the head of MMG, which has headquarters in Melbourne but is dominated by China, said Australia was suffering from ''rich country's disease'' and would devolve into a welfare state unless workers rediscovered a hunger for excellence.

Minmetals Resources chief executive Andrew Michelmore. Credit:Reuters

Addressing the Australian-British Chamber of Commerce, Mr Michelmore, the former head of Western Mining Corporation, lamented the immobility of the Australian workforce and the resulting skills shortage in remote areas like Western Australia's Pilbara region.

''People can't be bothered moving 25 kilometres to get a job because they will live off social welfare instead, and it's a real worry for me watching Australia have a luxurious time at the benefit of our relationship with China,'' he said.