Top mining CEOs hint at further downturn in most recent QRC report
View the latest QRC State of the Sector Report
The rising cost of doing business is crippling parts of Queensland’s resources sector, according to a new report by the Queensland Resources Council (QRC).
Skyrocketing input costs along with global economic conditions and changing regulation were the top concerns for Queensland resource company CEOs in the latest QRC State of the Sector Report.
The report comes after the QRC’s Economic Contribution Report 2024-25 revealed that direct spending had fallen $3.44 billion in resources regions as companies focus on finding efficiencies and reducing operating costs.
Nearly half of CEOs surveyed in September 2025 expected compliance and regulation costs to increase by more than 25% in the next 12 months.
Regulatory uncertainty and high taxes remain in the top three concerns for CEOs since September 2023, and in 2025 following proposed interventions or changes to the national environmental policy, the national gas market review and industrial relations.
A QRC spokesperson said the report was a key indicator of the health of the industry which contributed $115.2 billion to Queensland in 2024-25.
“This latest report continues to demonstrate more investment or policy reform to help sustain existing operations, develop new projects and boost industry confidence.
“Eighty-two per cent of CEOs said cost escalation for energy, labour and regulatory compliance was eroding margins and straining operational sustainability which was expected to remain for the next 12 months.”
Other concerns from the sector include sustained shortages of skilled labour, particularly in the regions and leadup to the 2032 Olympic Games, with 61% of CEOs indicating the workforce was either just meeting or was critically short of their needs.
CEO’s remained committed to local supplier spending with 95% foreseeing either no change or moderate growth (5-25%) in local spends, despite cost of business increases and local supply compliance and innovation challenges.
CEO quotes on the state of the Queensland resources sector:
“Input costs are rising due to inflation, labour costs and environmental costs. Poor regulation means … the highest royalty regime in the world, which is not sustainable for the business’’
‘‘We are faced with increasing costs to do business in Queensland against a backdrop of the world’s highest coal royalty taxes coupled with steep reductions in sales prices”
‘‘Volatility in government regulation and decision-making [is] impacting investment from the global market’’
“Reduced coal prices have impacted operating margins; financiers are more reluctant to provide working capital support until cash flow fundamentals improve”
Miguel Holland – [email protected]
