Resource heads’ appetite for expansion fading

The number of mining and energy companies planning to expand their Queensland operations over the next 12 months has halved compared to the same time last year, a new report shows. The Queensland Resources Council's latest State of the Sector report shows 17 per cent of member chief executive officers surveyed have growth in mind compared to 35 per cent in 2023. QRC chief executive officer Janette Hewson said the report also showed the number of resources CEOs who expected to increase their workforce over the next 12 months had dropped from 40 per cent at the beginning of 2023 to 28 per cent this year. The peak body points the finger at uncompetitive government policies and regulatory uncertainty for holding investment back. QRC chief executive officer Janette Hewson. “The resources sector and State Government need to work together more closely to 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," Ms Hewson said. “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. "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.” The quarterly report found the industry’s No. 1 concern is policy uncertainty, followed by rising costs and an ongoing skilled worker shortage. CEOs pointed to a range of policies challenging their business including federal changes to IR laws ('same job, same pay' legislation) and delays and changes in environmental approval processes. Other comments included: “Poor regulatory decisions such as the Lake Eyre basin moratorium makes it hard to promoteQueensland as a destination for investment.” “Clarity around carbon abatement in opencut mining, including fugitive emissions.” “Constant change in the regulations and legislative space makes it difficult to forecast capital andOpEx for the years to come.” Nearly 90 per cent of the CEOs surveyed for the December 2023 quarter State of the Sector report also believe the Queensland Government should do more to stand up for the industry against misinformation campaigns. Meanwhile, two-thirds of member CEOs surveyed believed demand for their commodities, including coal, would increase over the next three years. Nearly a quarter expected demand to increase significantly.

Resource heads’ appetite for expansion fading

Industry Queensland

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