Dire warning to slash red tape or Qld could lose billions
Billions of dollars in investment is on the line as Queensland is viewed too risky to do business, with resource industry heavyweights explaining why it simply can’t compete with other states or countries.
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Billions of dollars in future investment and thousands of resources jobs are on the line as Queensland is viewed as too risky to do business, with claims of up to 16-year approvals processes and unpredictable government policy.
The dire warning was issued at a Future Resources roundtable lunch hosted by The Courier-Mail from a slew of Queensland resources industry heavyweights who blame the extraordinary time it takes for approvals from exploration to production, “cost prohibitive” processes and the state government’s grip on mining royalties.
This story is part of The Courier-Mail’s special Future Queensland: Resources series that reveals the truth about the contribution the much-maligned resources industry makes to Queensland. You can read all of our coverage on the special topic page here.
Bravus executive director Samir Vora blasted what he called a “red carpet to red tape approach” and said “it’s a risk right now” to invest in new resources projects or associated infrastructure in Queensland.
He said his company’s $2.5 billion Carmichael coal mine and rail operation in the Galilee Basin was a “case study” on how not to attract future investment.
“Nobody is against what we need to do in terms of the compliances, but if you over regulate, then it becomes cost prohibitive,” Mr Vora said.
He said big global companies would do their due diligence and discover the state might not be worth dealing with.
“From an investment point of view, no one is expecting special treatment, they are expecting fair and equal treatment and if that’s not happening, it’s a risk,” he said.
“Changing things arbitrarily, not delivering on the promises, not honouring the commitment – that’s been the experience that we’ve gone through.
“Buying an existing mine is a different matter because they have an immediate income stream, but building new mines and infrastructure I would say that it’s at risk right now because it takes many years to recoup the money invested and you need political certainty and stability.”
Queensland Resources Council boss Janette Hewson said the state could not compete with others states or countries for investment opportunities if disruptive approvals processes took up to 16 years – the equivalent of four terms of state government – amid high royalties.
“When we’re talking about multi billion dollar investments … you need that certainty,” she said.
“I think it’s really important for the community to have absolute faith in regulation and approvals, but it’s about all the extra creep, all the green tape.
“When you add the extra layer of critical minerals, if it’s going to take potentially 16 years to get a mine up and going, we’re going to miss the boat as Queensland.
“Our whole issue about royalties and policy certainty is that if companies are discouraged from investing now, what is going to generate that value for Queensland going forward?”
Ms Hewson said keeping Queensland’s investment policies competitive was of one the key issues the QRC was urging of all side of politics to consider ahead of the October state election.
“We want to work with an incoming government to identify, how can we provide that confidence to the community that all environmental impacts are being identified and well regulated, but balancing that with the overregulation and the extra costs and delays,” she said.
“I think that’s a piece of work that an incoming government can seize upon and really make a difference to restoring Queensland’s reputation as an investment destination.”
Australian Energy Producers Queensland Director Keld Knudsen said approvals processes were a constant source of frustration for members.
“We do need to have that signal from the (state) government to continue to invest,” he said.
“Even little things for us like to see constant tenure being grantedlike the six permit awards last month.
“It’s really strong signal for us they want to continue to see exploration in the state but it needs to continue.”
Mining and Resources Minister Scott Stewart said since 2020, the median grant time for mining leases for coal was 866 days and 897 days for minerals projects.
“Any resources project must stack up environmentally, socially and financially – whether it is coal, gas or critical minerals,” he said.
“We are always looking at ways to improve the processes.
“We have also engaged the Queensland Law Reform Commission to look into objections process for mining lease applications and their associated environmental authorities.
“This review will look into ensuring the system is efficient and fit for purpose.”
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