A new report has highlighted what is at stake for Queensland should investment and confidence in the state’s coal sector continue to decline, warning of serious ramifications for both the economy and communities across the region.
The independent analysis, commissioned by the Queensland Resources Council (QRC), found that the coal sector has added more than $710 billion in value to the Queensland economy over the past 15 years.
QRC Chief Executive Officer Janette Hewson said the findings demonstrate the sector’s importance “well beyond the royalties and export revenue that help fund roads, hospitals, schools and the services all Queenslanders rely on”.
“Queensland produces some of the world’s best quality coal and this demand continues for both steelmaking and thermal coal,” Hewson said.
“Our steelmaking coal is a crucial ingredient for the infrastructure that will support the energy transition, and our thermal coal is ensuring energy security here in Queensland and among our trading partners.”
“It’s well known that coal is Queensland’s most important export which in the 2023-24 year contributed $85.3 billion to the state economy, including $10.6 billion in royalties.”
The report also documented the significant flow-on benefits generated by coal mining, including support for local businesses, jobs, and community groups.
In the 2023-24 financial year:
- $25.6 billion was spent on goods and services with over 7,570 local businesses.
- 798 community organisations received support through philanthropic, social investment and community benefits.
- The sector directly employed 27,002 Queenslanders and supported 387,285 direct and indirect jobs throughout the state.
“These benefits have long provided for Queensland, with the coal sector underpinning the state’s prosperity for decades,” Hewson said.
She added, since 2010, the sector had generated $335.8 billion for the economy, supported an average of 24,795 jobs per year, and spent $285.5 billion with local businesses and on community and government contributions.
Hewson argued that the findings reinforce the need for government policy that encourages investment, including “a fair and balanced coal royalty system”.
“The recent budget indicates the new government is adopting what it states as ‘bad policy’ even against its own determination on progressive royalties,” Hewson said.
“This is jeopardising thousands of jobs across Queensland and an industry that underpins our economic prosperity.”
Regional leaders echoed these concerns. Kylie Porter, CEO of the Greater Whitsunday Alliance (GW3), said coal remains the region’s most important industry.
“The resources sector is a major local employer in our region directly and indirectly supporting nearly 76,000 jobs, which is nearly three-quarters of total employment,” she said.
“Our local METS sector is not just a supplier of innovative technology to Queensland’s mining industry but is also a significant export industry in its own right.”
Dean Kirkwood, General Manager of the Resources Industry Network (RIN), highlighted the stakes for local communities, stating: “It is essential for regions like ours that we can secure long term investment to deliver the resources projects that will drive future local jobs and economic growth.
“When the resources industry faces challenges from rising costs, it has flow on impacts that affect our local suppliers.”
The report comes as the Queensland government forecasts a sharp decline in coal royalties for 2024-25, expected to halve from the previous year to $5.5 billion, raising concerns about a budget deficit and the long-term viability for some producers amid high royalty rates and lower prices.
