Report reveals confidence decline among Queensland’s resources sector
Click here to read QRC’s State of the Sector Report.
A new report reveals the true state of Queensland’s resources sector with declining confidence as concerns are raised over regulation and the rising cost of doing business.
The Queensland Resources Council’s (QRC) State of the Sector Report, the 53rd since the first was published in 2009, identifies royalties and taxation reform along with increasing operational costs as the top concerns for CEOs over the next year.
QRC Chief Executive Officer, Janette Hewson, said the State of the Sector Report provides a barometer for the industry generating $120.2 billion to Queensland and central to all commodities important to the global energy mix, including coal, gas, metals and critical minerals.
“We must rebuild confidence after a decade of uncertainty and changing goal posts by the previous government,” QRC Chief Executive Officer Janette Hewson said.
“Increased production costs as well as the continuing impact of coal royalties are creating difficulties for producers.
“Nearly half of member company CEOs are less confident about the next 12 months for the sector in Queensland on the back of falling demand for commodities, and the rising cost of production with only 35% considering expanding their operations.
“The longer-term outlook is more positive with a majority of CEOs expecting demand to increase over the next three to five years highlighting the ongoing potential of the resources sector to continue supporting jobs and Queensland’s economic prosperity.”
QRC has been encouraged by the new Queensland Government’s commitment to streamline approvals, but it remains a key issue for the industry.
“The Resources Cabinet Committee is a vital step forward. This week, QRC presented its recommendations to the Committee advocating for the removal of duplication and over-regulation to accelerate resources projects development.
“As we saw with President Trump’s announcement that the US will pursue a greater share of the global coal export market, it’s crucial that Queensland streamlines approvals to keep our state competitive,” Ms Hewson said.
In some encouraging news from the report, 75 per cent of companies are likely to invest over the next 12 months to reduce emissions from their operations.
“This investment demonstrates the resources sector’s progress in reducing emissions and builds on the industry’s reputation in sustainable and responsible resource production,” Ms Hewson said.
“The global energy transition is seen by member company CEOs as good news for the Queensland resources sector, driving increased demand for our coal, gas and critical minerals required to ensure a reliable and sustainable energy supply and to develop the renewable technology to support the transition.”
Key findings from the report are:
- Royalties and taxation reform: 50% of CEOs across coal, gas, metals and critical minerals companies identified changes to Queensland’s royalties or taxation schemes and reducing operating costs as their top policy priority for 2025. A fairer framework is essential to attract investment for Queensland’s future resources sector.
- Streamlined approvals: Delayed approvals remain one of the biggest barriers to growth, forcing companies to defer or abandon critical capital investment decisions.
- Transparent governance: Clear and consistent decision-making from government is critical to restoring investor trust and creating a stable environment for long-term planning.
*Read more about the role of the resources sector and clean energy technologies here.
