A new Queensland Resources Council (QRC) report has found the uncertainty due to changes in Government policy and regulation is overshadowing optimism over new opportunities for Queensland’s resources industry.
The latest QRC State of the Sector study showed that Queensland’s resource companies are poised to seize the possibilities presented by the transition to a decarbonised future.
Resources companies, according to QRC Chief Executive Ian Macfarlane, are making a significant contribution to Queensland’s economy and the push towards a cleaner future, and the State Government has to work with the industry to get the best outcomes for Queensland.
“Queenslanders are now more aware than ever of the importance of our resources sector and understand the need for policies that promote future investment and jobs. However future investment in new projects and jobs, including in the minerals needed for a lower emissions future, is not guaranteed,” Macfarlane said.
He stated that it is evident that abrupt policy changes, notably the State Government’s decision to levy the world’s highest coal royalty tax, are putting a brake on the State’s resources industry.
He reported that 41% of QRC’s member company CEOs said the shift to a low-carbon future would raise demand for Queensland’s resources which includes rare earths and critical minerals needed to develop and power future technologies, as well as metallurgical coal to provide the steel for wind turbines, electric vehicles, transmission towers and other infrastructure needed to meet lower emissions targets.
“But without the right policy settings from Federal and State Governments, Queensland’s resources sector risks missing out on the investment in new projects to make the most of the emerging opportunities,” Macfarlane said.
“There is a pipeline of projects worth more than $100 billion in a range of commodities, including those needed for low emissions energy and net zero technologies that is now under a cloud because of the policy uncertainty in Queensland,” he stated.
He explained, “As the industry has repeatedly warned, resources companies simply won’t commit to the big investment decisions required to ensure a pipeline of future projects while uncertainty created by sudden policy changes, remains such a key issue of concern.”
Macfarlane noted that the State of the Sector report found that 47% of CEOs said they are likely to invest in technologies and projects to reduce emissions, including fuel reduction, carbon capture, and electric trucks.
“Close to a third are already relying on renewable energy to power part of their operations, and we expect that figure to grow rapidly in coming years,” he stated.
“We again call on the Queensland Government to work with the industry to achieve the best outcome for our state,” he added.
