Urgent call for NQ resources sector to stay competitive

North Queensland’s resources industry remains at risk of being lost to a more attractive global market, with an industry leader warning that crippling red tape is scaring off investors.

Glencore will benefit from an international transition to renewable energy and zero-emissions targets, but will also need to adapt to these goals in their own operations, including in Mount Isa. Picture: Glencore.

North Queensland’s resources industry remains at risk of being lost to a more attractive global market, with an industry leader warning that crippling red tape, sky-high energy costs and the “world’s highest” royalties were threatening future investments.

In today’s instalment of Future Townsville Queensland Resources Council CEO Janette Hewson discussed where she believes the industry is being hampered and how Queensland’s proud mining history, anchored in the North West Mineral Province, still has a bright future.

This year’s series, in partnership with S.Kidman, Bravus, Port of Townsville, Aurizon, Queensland Resources Council and Sun Metals, will examine the once-in-a-generation opportunities for trade and investment in this city.

Ms Hewson, who has worked in the resources industry for more than 30 years, said Queensland had increasingly become less profitable for companies over the past decade.

“At the end of the day what we produce is a commodity and there’s a set price out in the market,” she said.

“It’s not like I am able to develop a product and I look at my cost base, and I add a healthy margin for my investment capital, and then I sell it for a certain price.

“We compete internationally on a set price … No one’s going to pay us more (for our commodity) to be environmentally excellent. No one’s going to pay us more because of the fact that we have high labor costs or high energy costs in our country.

“We’ve just got to be able to absorb all that and compete and that’s the piece where, I think, in the past decade, we’ve got to a point where we’re probably so over regulated that we’re tying ourselves up in lots of red tape and green tape.”

12/7/2024: Janette Hewson, CEO, Queensland Resources Council , interviewed by Chris Jones, Editor, The Courier-Mail, during the Future Resources 2024 lunch at the Brisbane Convention Centre. pic: Lyndon Mechielsen/Courier Mail

The Mount Isa born Queenslander said she likened the difference of mining companies trying to operate in Queensland versus internationally with driving along a highway.

“If we had a highway where from the start of exploring to the point of production, if we could see the highway was straight, we could understand the speed limit and what we needed to do along the way, but we could get there as safely and as quickly as we could and that’s what we’ve got to aim for,” she said.

“But when I think about what we’ve got here, it’s almost like we start something, and we can’t actually see the end point, and it’s a really windy road, and there’s potholes, and there’s also detours, and there’s a hell of a lot of stop signs.

“So it’s always going to take us longer to get to production than it will for some of the countries that we compete with.

“They don’t have the roadblocks, the stop signs, the winding roads where they have to keep slowing down.”

It takes on average around 15 years for a copper project to reach production in Queensland.

“Townsville is such an important part of unlocking the potential of Northern Queensland, we can’t take 15 years to get a copper project up,” she said.

Dale Last Queensland resources and Mines Minister

“A lot of this is about trying to delay projects for ideological reasons. But you know, every development has impacts, whether it’s property development, whether it’s a new road, it’s all about how do you control those impacts?”

She said the QRC had been pleased with the early steps the new state government had already taken and was hopeful the approvals process would be made faster while remaining reliable.

Minister for Natural Resources and Mines Dale Last said North Queenslanders had forgotten how “the former Labor Government put thousands of jobs in limbo when it shifted the goalposts over the Adani/Bravus Carmichael coal mine”.

“The Crisafulli Government backs our resources sector and the hardworking Queensland families whose livelihoods depend on a strong mining industry,” he said

“We are working closely with industry to improve the mining approvals system and ensure projects aren’t left to languish for years without a decision.

Through the Resources Cabinet Committee, we are delivering faster, clearer decisions for mining and gas companies, to give confidence to investors and ensure Queenslanders continue to benefit from our world-class resources.

“This includes developing a proactive, co-ordinated approach to streamline Commonwealth and state approvals, to reduce regulatory complexity and double-up.”

Originally published as Urgent call for NQ resources sector to stay competitive