A new report from the Queensland Resources Council (QRC) has revealed declining confidence within Queensland’s resources sector, as industry leaders voice concerns over increased regulation and the escalating cost of doing business.
The QRC’s State of the Sector Report, the 53rd since its inception in 2009, highlights royalties and taxation reform, alongside rising operational costs, as the foremost challenges facing CEOs in the year ahead.
QRC Chief Executive Officer Janette Hewson described the report as a critical barometer for an industry that generated a record $120.2 billion for Queensland in the 2023/24 financial year, underpinning key commodities such as coal, gas, metals, and critical minerals.
“We must rebuild confidence after a decade of uncertainty and changing goal posts by the previous government,” Hewson said.
“Increased production costs as well as the continuing impact of coal royalties are creating difficulties for producers,” she added.
The report found that “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 per cent considering expanding their operations.”
Despite the short-term challenges, Hewson noted a more optimistic longer-term outlook.
“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.”
The report’s key findings include:
- Royalties and taxation reform: Half 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, the report argues, is essential to attract future investment.
- Streamlined approvals: Delays in government approvals remain a significant barrier, forcing companies to defer or abandon critical capital investment decisions.
- Transparent governance: The need for clear and consistent government decision-making is seen as crucial to restoring investor trust and enabling long-term planning.
Hewson welcomed the new Queensland Government’s commitment to streamlining approvals but stressed it remains a key issue.
“The Resources Cabinet Committee is a vital step forward,” she said.
“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.”
In a sign of progress, the report found that 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,” 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.”
The QRC’s findings underscore the sector’s pivotal role in Queensland’s economy, while also highlighting the urgent need for policy certainty and regulatory reform to restore confidence and unlock new investment.
