Regional Queensland powers resources sector but braces for full impact of coal royalty hit

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New figures have again confirmed regional Queensland as the backbone of our state’s resources sector but have also signaled serious challenges ahead for the industry and the impact on regional communities.

The Queensland Resources Council (QRC) Economic Contribution Report 2025 showed almost half of the $115.2 billion contributed by the state’s largest industry was generated in the regions.

QRC Chief Executive Officer Janette Hewson said nearly half of the 550,000 direct and indirect jobs the industry supports are in regional areas.

“Regions make a significant contribution to the success of the resources sector, and the industry is proud of the strong partnerships developed with regional communities and stakeholders over many decades,” Ms Hewson said.

“But rising costs and the world’s highest coal royalty rates are taking a toll on the industry and there are concerns some of our key resources regions will feel the impact over the coming year.”

The report found that direct spending by resources companies has fallen significantly over the past 12 months.

In the Mackay region, spending fell by about $2 billion, $1.1 billion in Fitzroy and $346 in North West Queensland. Across the three regions, the resources sector’s contribution to local Gross Regional Product fell by a combined $3.44 billion.

“Across the three regions, the industry supports 133,380 direct and indirect local jobs so there is a lot at stake for these communities if the government continues with a royalty regime that works as a handbrake on industry confidence and investment,” Ms Hewson said

General manager of Mackay-based Resource Industry Network, Dean Kirkwood, said the decline raised concerns about the impact on local business and jobs.

“This is a substantial amount of money to be taken out of local economies that are so reliant on a strong and vibrant resources sector,” Mr Kirkwood said.

“There are serious concerns about the flow-on impact on local jobs over the coming years.

“It’s money that was being spent with local businesses that support the industry, from the region’s world class Mining Equipment, Technology and Services (METS) sector to individual suppliers and contractors.

“While the State Government inherited a flawed coal royalty regime that is damaging new investment, it must act to return to a fairer and more balanced system before more jobs are lost.”

Chief Executive Officer of regional economic development agency, Greater Whitsunday Alliance (GW3) Kylie Porter, said the region has a long and proud history of significant contributions to Queensland’s economic prosperity.

“Our region is fortunate to have a diverse economy, and the resources sector has been a key part of it for many decades,” Ms Porter said.

“The jobs of more than 65,000 people in the Mackay region directly or indirectly rely on the resources sector so it’s crucial that it remains strong, supported by policies that promote new investment.”

Media Contacts:

Jana Dore – [email protected]

Matt Dunstan – [email protected]