Report finds global disruptions adding to mounting pressures for Queensland resources sector

Click here to read QRC State of the Sector report

Click here for TV/ audio grabs of QRC CEO Janette Hewson

The Queensland Resources Council (QRC) today released its latest State of the Sector report, revealing a widening gap between production and declining business confidence across the state’s resources industry.

The QRC report revealed the volatile global environment is now the leading concern for Queensland resources companies, adding to rising cost pressures and policy uncertainty, including the world’s highest coal royalty rates.

The first half 2026 CEO Sentiment Survey shows a clear deterioration in outlook, with 48 per cent of resources CEOs reporting lower confidence in industry growth prospects compared with the previous 12 months, including 19 per cent who are much less confident.

Companies indicated that the conflict in Iran has had a significant impact on their business through increased cost.

Statements from Queensland’s resources sector CEOs in the latest report.

“Geopolitical fragmentation, changing trade rules and higher regulatory intervention are all increasing risk and variability.”

“Cost pressure is coming from every direction, and it’s compounding. Diesel remains the most acute concern, but labour, contractors, consumables and specialist services are all rising at the same time.”

QRC Chief Executive Officer Janette Hewson said the report revealed that rising concerns over global macroeconomic conditions were adding to existing industry pressures from increased operating costs and regulatory uncertainty.

“Queensland’s resources sector is resilient, but it is not immune to sustained pressure as events in the Middle East deepen existing long term industry concerns over policy uncertainty and the damaging impact of the current coal royalty regime.

“The results reflect the impact of geopolitical conflict, energy market disruption and broader uncertainty across global markets, which are now shaping the operating environment for Queensland projects.”

Even as commodity prices and export volumes improve, cost pressures are limiting the ability of businesses to translate stronger market conditions into sustained or new investment.

Regulatory settings also remain a persistent concern, with ongoing policy developments in areas such as gas market reforms and taxation continuing to contribute to uncertainty.

The combined impact of these factors is reflected in a more cautious outlook for growth, with 62 per cent of CEOs saying they are unlikely to expand or have no plans to pursue expansion opportunities in Queensland over the next 12 months.

“With the State Budget approaching, it’s an opportunity for the Queensland Government to reset policies and regulations that are holding the resources sector back, including the world’s highest coal royalty rates,” Ms Hewson said.

“Industry has welcomed steps by the Queensland Government to improve approval times for new resources projects but more needs to be done to attract new investment to our state.

“That matters for every Queenslander. The resources sector contributed $115.2 billion to the Queensland economy last year and supported close to 550,000 jobs”.

The State of the Sector report draws on insights from CEOs across Queensland’s coal, gas, metals and minerals industries, providing a forward-looking view of the challenges and opportunities facing one of the state’s most critical economic sectors.

Media Contact:

Matt Dunstan – [email protected]