The Queensland Resources Council (QRC) has released its latest quarterly State of the Sector report, revealing a mix of optimism and concern for the state’s resources industry.
While member companies remain confident about the continued strong demand for Queensland’s commodities, they have identified government policy and regulatory uncertainty as the biggest threat to new investment and jobs in the sector.
QRC Chief Executive Officer Janette Hewson emphasised the need for balanced, stable, and consistent policy settings to secure future investments.
“As the State Election approaches, our message to all political parties is that balanced, stable and consistent policy settings are critical to ensuring the resources sector can continue to underpin Queensland’s economic prosperity in the decades ahead,” Hewson stated.
The report highlights that 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 used in wind turbines, solar panels, and electric vehicles.
However, the industry faces significant challenges, particularly regarding the recent introduction of high coal royalty tax rates.
Hewson noted: “The royalties increase has added to rising operating costs, which have been identified by member companies as another significant concern for the industry.”
Direct quotes from company CEOs describe the new royalty burden as “killing investment” and leading to a “full capital strike on any expansion activities”.
The impact of this policy change extends beyond coal producers, with 71 per cent of non-coal company CEOs reporting that concerns over royalties have decreased the likelihood of new projects.
Despite these challenges, the report also showcased the sector’s commitment to sustainability.
Half of the surveyed CEOs reported their companies already use renewable energy to power parts of their operations, with 67 per cent planning further investments to reduce emissions.
Additionally, 36 per cent of companies are looking to invest in new initiatives for reusing or recycling.
Hewson highlighted the sector’s significant economic contribution, stating: “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 state approaches its election, the QRC is calling on all political parties to address the industry’s concerns and create a stable environment for investment.
With the right policy settings, Hewson believes the resources sector can continue to provide crucial support for Queensland’s economy in the coming decades.