The Queensland government has set out a resource-heavy economic course for the country, allocating $749.1 million in the 2026-2027 State Budget to accelerate new critical minerals projects and establish a Fuel Security Plan.
The natural resources, manufacturing, and regional development package establishes a new Fuel Security Plan and aims to unlock critical minerals for sovereign capability.
The government’s headline resources strategy includes $46.1 million over three years to accelerate the extraction, processing, and export of critical minerals, alongside $6.4 million to re-commercialise former mines by processing old tailings.
Furthermore, a $19 million package aims to restore domestic fuel security by unlocking the Taroom Trough and expanding local refining and storage capacity.
“This budget sends a clear signal Queensland is open for business and serious about growing the industries that underpin our economy,” said Resources and Manufacturing Minister Dale Last.
“We are backing the resources sector with targeted investment to fast-track exploration, support critical minerals development and give proponents the confidence to invest and get projects moving.”
However, the budget arrives alongside independent warnings that Queensland is doubling down on coal and gas at the expense of cheaper renewable energy.
Think-tank Climate Energy Finance (CEF) warns the budget misses the mark completely on energy transformation. Analysts point out that while the government is allocating AU$146.1 million to critical minerals, it is pouring a massive AU$5.1 billion into upgrading transmission and sustaining ageing coal-fired power stations, including AU$520 million this financial year alone for upgrades at Stanwell, Tarong, and Kogan Creek.
CEF analyst Matt Pollard noted that despite the government taking credit for recent electricity price drops, independent regulators attribute energy cost deflation to increased wind and battery output across the national grid rather than fossil fuels.
“Putting bandaids on ageing assets without building out and enabling low-cost replacement capacity poses a significant risk to the sustainability, both economically and environmentally, of the QLD grid,” Pollard said.
The budget also delivers wins for regional manufacturing, confirming that the Queensland Train Manufacturing Program will reach full steam in Maryborough this year, alongside a new regional manufacturing hub and a procurement opportunity for local builders to tender for up to 630 new public transport buses.
