Mining company bosses accuse Queensland Government of not supporting sector

A dire new report has laid bare the true impact of Queensland’s coal royalties regime as mining and energy bosses demand urgent action. VOTE IN OUR POLL

The number of mining and energy companies planning to expand their Queensland operations has halved as mining company bosses say the government doesn’t back their sector.

The dire results of Queensland Resources Council’s latest State of the Sector quarterly report has prompted the powerful body’s new chief executive to extend an olive branch to the state government amid an ongoing argument over controversial coal royalty hikes.

“The resources sector and state government need to work together more closely,” QRC boss Janette Hewson said.

“(This will) ensure Queensland can continue to attract long-term investment in new mining and energy projects, which offer decades of well-paid jobs and stimulate economic activity throughout the state.”

According to the QRC State of the Sector quarterly report, 89 per cent of mining sector chief executives believe the state government is not supportive of the resources sector and fails to defend the industry against misinformation.

And the number of mining and energy companies planning to expand their Queensland operations in the next 12 months has halved compared to the same period from 2023, dropping to 17 per cent from 35 per cent.

Policy settings are the main barrier, with chief executive citing the state government’s coal royalty hike and federal government changes as factors.

“If there is a policy change on royalties, it is very likely we would look at investment,” one mining boss said.

The QRC’s survey gleaned responses from about 30 chief executives of medium to large resource companies, representing nearly 40 per cent of major resource sector players represented by the peak body.

According to the quarterly report the industry’s number one concern is policy uncertainty, followed by rising costs and an ongoing skilled worker shortage.

“Our sector can supply the raw materials needed to make the steel, batteries and low-emission technologies required for the global energy transition, but companies want to invest in jurisdictions which offer a stable and internationally competitive policy environment,” Ms Hewson said.

“Right now, companies are telling us that isn’t Queensland, so we have some work to do to restore our reputation as a secure, long-term investment destination for resources projects.”

Queensland Deputy Premier Cameron Dick speaking during Question Time at Parliament House in Brisbane. Picture: Dan Peled

The state government raked in a $15.3bn coal royalties windfall – three times what the government had expected – in 2022/23.

And the coal rivers of gold will flow in 2023/24 with at least $9.2bn in revenue according to the state government’s mid-year budget update.

Treasurer Cameron Dick this week continued to espouse the benefits of progressive coal royalties, and how it was supporting jobs and economic development across the state.

He has promised more cost-of-living relief in the upcoming state budget, to be funded by coal royalties.