A recent report by the Queensland Resources Council (QRC) reveals that Queensland’s resources sector has significant potential for job creation and economic growth, especially in light of the global transition to low-emission technologies.
However, the sector is hindered by uncompetitive government policies and regulatory uncertainty, which are deterring investment.
According to the QRC’s latest State of the Sector report for the December 2023 quarter, two-thirds of member CEOs believe that demand for their commodities — including coal — will increase over the next three years. Despite this positive outlook, challenges persist.
QRC CEO Janette Hewson highlighted concerns regarding the industry’s future growth, as she stated: “Our report also shows the number of resources CEOs who expect to increase their workforce over the next 12 months has dropped from 40 per cent at the beginning of 2023 to 28 per cent this year, which is not good news for Queensland.”
Hewson emphasised the need for collaboration between the resources sector and the state government to attract long-term investment.
She noted: “Our sector can supply the raw materials needed to make the steel, batteries, and low-emission technologies required for the global energy transition, but companies want to invest in jurisdictions which offer a stable and internationally competitive policy environment.”
Despite these challenges, there are positive signs.
The report found that 72 per cent of resource companies expect to increase procurement from local and Indigenous businesses in the next 12 months, which will benefit regional economies and job creation.
Policy uncertainty, rising costs, and a skilled worker shortage were identified as key concerns in the report.
Additionally, nearly 90 per cent of the CEOs surveyed believe that the Queensland government should do more to counter misinformation campaigns against the industry.
The mining and energy sector contributed almost $117 billion to the Queensland economy last financial year and supported over 530,000 jobs directly or indirectly.
The report underscores the importance of addressing regulatory challenges to unlock the sector’s full potential and drive economic growth in Queensland.
