Mining and energy companies dig deep to back Qld business
4 September 2023
New data shows more than three in every four dollars of purchases made by Queensland mining and energy companies in 2021-2022 was spent with a business located in Queensland.
A new report released today by the Queensland Resources Council (QRC) shows a whopping 77 per cent of all purchases by QRC member companies during this period was spent locally, totalling $26.8 billion.
The figure is slightly down from last year’s record result of 82 per cent, representing a 3 per cent drop in value.
Overall, QRC member companies spent $34.9 billion on goods and services over the 12-month period, with $7.6 billion (22%) spent with interstate or New Zealand vendors and $0.5 billion (1.5%) on overseas purchases.
QRC Chief Executive Ian Macfarlane said resources companies make a concerted effort to spend locally to support local businesses and regional economies and demonstrate their commitment to Queensland.
“There’s no better way to build a strong social license to operate with the Queensland community than for resources companies to provide opportunities for local businesses to be part of our industry’s extensive supply chain,” Mr Macfarlane said.
“Local suppliers are absolutely critical to the long-term success of the resources sector because they understand our needs and can collaborate with companies on improvements, often at lower cost than other suppliers.
“Using local suppliers reduces transport costs, minimises greenhouse gas emissions and offers better supply chain resilience, which we’ve seen the value of during periods of global disruption due to the pandemic.
“Buying locally also benefits regional economies and communities by creating new business opportunities, employment and sustainable growth.”
In other good news for Queensland, the QRC’s latest Local Content report reveals the resources sector’s increasing success in engaging with Indigenous business operators.
Mining and energy companies spent $93.8 million with 108 Indigenous businesses in Queensland in 2021-2022, representing a 13% increase in expenditure on the previous year.
As further evidence of their commitment to buying local, nearly half (44%) of QRC member CEOs said their companies ran programs to increase opportunities and build on the capabilities of local suppliers through pre-qualification workshops, support in upgrading safety systems, training and mentoring programs and contractor forums.
Mr Macfarlane said the outlook for expenditure by the sector was strong, with nearly a quarter (22%) of CEOs saying they expect to increase their spending with local suppliers over the next 12 months, and only 6% of CEOs expecting it to decrease.
“This is a clear sign local suppliers who rose to the challenge during Covid are using their increased capabilities to push for new opportunities to provide goods and services to Queensland’s mining and energy sector,” he said.
“This is a fantastic outcome for resources companies and for Queensland suppliers.”