The Queensland Resources Council’s (QRC) recent report has highlighted concerns for resources companies in Queensland, including skilled worker shortages, government policy settings, rising costs, and global economic conditions.
They are among the main findings of QRC’s quarterly check of industry views on the future outlook for Queensland’s resources sector via a State of the Sector survey of CEOs.
QRC Chief Executive Ian Macfarlane stated that the report demonstrates several major impediments to Queensland capitalising on emerging opportunities from the global push towards a lower-emissions future.
“The world is looking to Queensland, amongst other countries, to meet surging demand for critical minerals like copper and nickel to build the batteries, solar panels and electrical vehicles of the future, which will be central to achieving ambitious decarbonisation targets,” Macfarlane said.
In its economic and commodity forecast released in August, BHP said the world’s route to lower emissions will necessitate a growing resources industry.
“What is common across the 100 or so Paris–aligned pathways we have studied is that they simply cannot occur without an enormous uplift in the supply of critical minerals such as nickel and copper,” BHP stated.
“To meet global demand, however, significant new investment is required in Queensland but right now, that’s under a cloud because of recent, sudden changes in economic policy,” Macfarlane added.
According to the report, China installed over 101 gigawatts of wind and solar capacity in the first half of 2023, surpassing hydro as China’s second-largest power source. This investment is equivalent to the US’s hydro capacity over the last century and more than a half times the generation capacity of Australia’s national electricity market. The pace of capital investment required for reducing emissions is significant.
The report noted that new investment from China is boosting demand for Queensland commodities. CEOs anticipate the energy transition to significantly impact their products over the next five years.
Macfarlane stated that CEOs of member companies are expressing growing concerns about rising costs and global economic conditions affecting business confidence.
Macfarlane said the Queensland Government’s decision to impose the world’s highest coal royalty tax rate has increased company costs and threatened future investment in Queensland projects.
“The major concerns are that Queensland will continue to decline as an investment destination that companies will simply put their money in other states and other countries around the world. Not just because of royalties, but because of regulations,” he added.
“The lack of investor confidence in the traditional minerals because of the regulations because of the royalties, because of the government attitude towards the industry also reflects in the rare earths and critical minerals,” he continued.
QRC is urging all levels of governments to do what it can to actively encourage the next wave of resources investment to maintain the strength of the Queensland economy.
“Amid heightened concerns about the global economic outlook, a better approach would be for Queensland to offer stable and consistent policy settings to attract long-term investors in a competitive market, both in Australia and internationally,” Macfarlane stated.
The report also demonstrated that the high-tech future that will drive up demand for many of Queensland’s resources will revolutionise the state’s resource operations. New technology will necessitate new skills, resulting in a broad pipeline of jobs for Queenslanders, which means industries are likely to compete for the limited talent pipeline.
According to a report, CEOs are reportedly considering new skills for high-tech resources sector maintenance, including autonomy, artificial intelligence, and trade qualifications.
While resources CEOs claim that the transition to a lower-emissions future will generate chances for growth, the QRC report identifies skilled workforce scarcity as a significant problem for companies.
“More than half of CEOs say the move to automation and digitalisation will mean more jobs, however 95 per cent say a shortage of skilled workers will affect productivity and profitability,” Macfarlane said.
CEOs have unanimously stated that the demand for science, technology, engineering, and math (STEM) graduates will increase. When questioned about their view for the next five years, 75% of CEOs anticipate an increase in demand for STEM graduates, with none anticipating a reduction. Notably, 10% of CEOs anticipate a 25% increase in demand for STEM degrees.
“Along with their ongoing support for the QRC’s educational arm, the Queensland Minerals and Energy Academy, which delivers workshops to promote career opportunities in resources almost 100 schools each year, resources companies are increasingly conducting their own local campaigns to recruit new graduates to the sector,” Macfarlane added.
The report emphasises the urgent need for the Queensland Government to enhance its policy settings to ensure the resources sector continues to generate job opportunities and economic success.
