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Members threaten to quit Queensland Resources Council

Queensland Resources Council’s decision to campaign directly against Greens MPs in the upcoming state election could cost the organisation.

Queensland Resources Council chief executive Ian Macfarlane.
Queensland Resources Council chief executive Ian Macfarlane.

The Queensland Resources Council’s decision to campaign directly against the election of Greens MPs in the upcoming state election could cost the organisation, with some of its biggest members threatening to quit the group over advertisements asking voters to preference the Greens party last.

BHP suspended its membership of QRC on Tuesday, with Origin Energy following suit. Both cited QRC’s decision to run party-political advertisements during the election campaign rather than highlight policy issues important to the resources sector.

Other big QRC members, including metallurgical coal major Anglo American and Perth-based South32 are also believed to have expressed concerns over the ads and may be reconsidering their membership of the industry body.

The QRC campaign, launched early this week, urges Queensland voters to put “jobs first, Greens last” and includes social media and radio advertising, as well as billboards and a letterboxing campaign aimed at inner-city Brisbane electorates seen as likely to vote for Greens candidates.

Launching the campaign, QRC chief executive Ian Macfarlane, a former federal Liberal industry minister, said: “If people want to protect their jobs and keep the Queensland economy strong, they need to put the Greens last on their ballot paper so they don’t unintentionally vote in a minority government controlled by the Greens.

“If the Greens get into a position of influence in Queensland, it will be a disaster for the resources industry and for the 372,000 people employed in our sector and the 14,400 businesses that depend on us. The Greens also want to shut down jobs in farming, tourism, forestry and fishing, which are all essential industries for post-COVID recovery and job-creation, particularly in regional Queensland.”

But the campaign now threatens to split the industry body, as key members who contribute a large portion of QRC’s $6m in annual membership fees reconsider their association with the organisation.

It is understood a row between large QRC members and the organisation’s leadership had been festering behind closed doors at QRC since details of the advertisements were circulated. The advertisements are believed to have been presented to QRC’s board and sources say a handful of QRC directors opposed the campaign’s launch after seeing them, including representatives of BHP, Anglo American and South32.

It is understood their opposition, based on the fact the campaign was targeted at a political party, not policy positions, was overruled by the overwhelming majority of the 16-member board.

QRC directors are elected in their own right by members, but its board is generally made up of executives of member companies.

In addition to BHP coal boss James Palmer, Anglo American coal chief executive Tyler Mitchelson and South32 vice-president Rob Jackson, QRC directors work for resources majors including Glencore, Whitehaven Coal, Arrow Energy, Peabody Energy, QCoal and Evolution Mining.

Origin Energy confirmed on Wednesday it had told the QRC it would be suspending its membership over the advertisements, following BHP’s decision earlier this week to review its own membership of the organisation.

“Origin values the policy advocacy of the QRC, however, the campaign around the Queensland election oversteps a clear boundary between policy and politics and we do not endorse this activity. Origin expressed concerns about the campaign directly to the QRC, and we have since communicated our decision to suspend our membership,” a spokeswoman said.

BHP suspended its membership late on Tuesday, saying it had been left with “no choice” after QRC’s decision to “undertake advertising that specifically targets the overall standing of one political party during the current Queensland election campaign”.

“BHP has expressed to the QRC on several occasions its opposition to this advertising approach and had formally requested that it be withdrawn. Unfortunately this has not occurred,” the company said.

“BHP supports communications campaigns focused on policy issues of interest to the resources industry and the people who work in it and rely on it. The QRC has over many years made important contributions to such policy debates however the current campaign is not consistent with that contribution.”

A spokesman for South32 confirmed the company had also expressed its opposition to the campaign to QRC’s management.

“As with any potential misalignment between South32 and our industry associations, we have engaged with the QRC to formally raise our concerns,” he said.

“We value the work that the QRC does to support the Queensland resource industry and the broader community, however we do not support campaigns directed at individuals or political parties.”

Nick Evans
Nick EvansResource Writer

Nick Evans has covered the Australian resources sector since the early days of the mining boom in the late 2000s. He joined The Australian's business team from The West Australian newspaper's Canberra bureau, where he covered the defence industry, foreign affairs and national security for two years. Prior to that Nick was The West's chief mining reporter through the height of the boom and the slowdown that followed.

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Original URL: https://www.theaustralian.com.au/business/mining-energy/members-threaten-to-quit-queensland-resources-council/news-story/439cd6c82a15279ef286b75bc1110114