Queensland jobs at risk as resources face a fall

Australia’s resources exports hit a record high last financial year, but its what’s coming next that has experts worried about jobs in the sector.

AUSTRALIA is facing its first fall in mining and resources revenue in a decade, while Queensland’s economy faces a blow as coal prices drop and are expected to remain low for years to come.

Data from the Chief Economist’s Office shows coal prices have dropped 27 per cent in the past year, while a glut on the market and China moving more towards nuclear and hydro power are predicted to keep the coal price down.

Letters: Future bright for coal mining

Federal Resources Minister Minister Matt Canavan said a hit to the economy and jobs would be unavoidable unless more mines, not just for coal, were approved. He warned unnecessary red tape needed to be cut and mines approved faster so Australia could compete with other nations.

Coal prices have dropped 27 per cent between June 2018 and June 2019. A working mine site 160km west of Mackay in Queensland's Bowen Basin. Picture: supplied.

“If their supply comes on to market before Australian supplies, our opportunity will be lost,” he said. “Unnecessary red tape is the greatest threat to the continuing strength of Australia’s resources industry.”

Taking a swipe at the State Government, Senator Canavan said mine approval processes needed to be less than the nine years faced by Adani.

While new figures show Australia’s resources earnings hit a record $275 billion in the 2018-19 financial year, Senator Canavan said that was predicted to plateau and then decline in the next three to five years unless more was done to approve new projects.

Queensland Resources Council boss Ian Macfarlane said demand for Queensland coal remained strong, but there needed to be more certainty around approval processes and royalty prices to encourage investment.