Resource diversity helps insulate Queensland economy

The size and diversity of Queensland’s resources sector would continue to provide valuable insulation for Australia’s exposure to global recession, Queensland Resources Council Chief Executive Michael Roche said today.

Commenting on the release of a ‘downbeat’ business outlook report, Mr Roche said that Queensland’s transition from the ‘economic fast lane’ had been anticipated but never at the pace delivered during the last quarter of 2008.

‘Some resource companies have had to make rapid adjustments to stay viable in unprecedented global trading circumstances,’ Mr Roche said.

‘However, a number of companies are also proceeding with new investments, because it is also clear that the commodity demand driven by 2.5 billion people in China and India has been slowed, not derailed.’

Mr Roche said recent project development announcements at Gladstone including nickel processing and the creation of an export liquefied natural gas (LNG) industry worth tens of billions of dollars highlighted the sector’s diversity and resilience.

‘Coupled with these announcements, we’ve seen the prices for gold and silver continue to provide confidence to Queensland producers while new industries such as underground coal gasification and oil shale refining are reporting significant progress on their pilot projects.

‘Queensland’s newest coal mine – Jellinbah’s Lake Vermont – will begin railing its product to Gladstone in the coming days.’

Mr Roche said resource companies were pushing ahead with expansions and new projects to take advantage of what they considered a pause in demand growth.

‘Many companies are seeing opportunity in the global downturn that simply can’t be squandered through unnecessary bureaucratic delays.

'That is why the QRC is calling for an overhaul of the state’s project and tenure approval processes.

‘Similarly, we need to be keenly focused on the new industry infrastructure projects – rail, ports, water and energy - that will see Queensland much better placed than it was five years ago to take advantage of the next upswing in global resources demand,” Mr Roche said.

Media contact: Jim Devine (07) 3295 9560