QRC report reveals the opportunities and key challenges for Queensland resources sector

Queensland Resources Council (QRC) member companies remain confident about continued strong demand for Queensland’s commodities but have again identified government policy and regulatory uncertainty as the biggest concern for the state’s resources sector, threatening new investment and jobs.

The QRC’s quarterly State of the Sector report gauging industry sentiment also confirmed the progress a growing number of resources companies are taking action to reduce emissions and waste at their Queensland operations.

QRC Chief Executive Officer Janette Hewson says the report shows there is good reason to be optimistic about the industry’s future, if government can get the policy setting right, including a fair and balanced royalty system.

“As the State Election approaches, our message to all political parties is that balanced, stable and consistent policy settings are critical to securing the investment that will ensure the resources sector can continue to underpin Queensland’s economic prosperity in the decades ahead,” Ms Hewson said.

“The global energy transition is presenting new opportunities for all Queensland’s resources, from coal, gas, metals and critical minerals.

“56 per cent of member company CEOs believe the global decarbonisation transition will lead to increased and sustained demand for Queensland commodities, including steelmaking coal which is used for wind turbines, solar panels and electric vehicles,” Ms Hewson said.

The QRC is calling on all political parties to listen to industry’s concerns about the damage being caused to Queensland’s reputation as a stable place to invest by inconsistent regulation and sudden policy changes, particularly the introduction of the world’s highest coal royalty tax rates.

“The royalties increase has added to rising operating costs, which have been identified by member companies as another significant concern for the industry,” Ms Hewson said.

Direct quotes from company CEOs include: “The new royalty burden killing investment” and that the coal royalty increase has led to a ‘full capital strike on any expansion activities, sustaining capital only.”

“It’s not just coal producers who are expressing concerns, but QRC member companies involved in other commodities say the sudden policy change has significantly increased the risk in making such large investment decisions,” Ms Hewson said.

“71 per cent of non-coal company CEOs say concerns over royalties have decreased the likelihood of new projects.”

The State of the Sector report also showed the resources sector’s strong commitment to taking action to reduce emissions and waste.

“50 per cent of CEOs say their companies already use renewable energy to power parts of their operations and 67 per cent plan to make further investments to reduce emissions. Companies are continually looking at new ways to reuse or recycle with 36 per cent saying they’ll be making further investments on new initiatives,” Ms Hewson said.

“The Queensland resources sector has a lot to be proud of beyond its $117 billion contribution to the Queensland economy and the 530,000 jobs it supports.

“As the recent State Budget confirmed, everyday Queenslanders depend on a strong resources sector to support our state through challenging times. If we have the right policy settings that encourage investment, our industry can continue to provide that support for many decades to come.”