Resources remain stalwart as lockdowns spread

The Queensland Resources Council (QRC) has reiterated the importance of an operational mining industry during the pandemic. It’s in the wake of the latest Resources and Energy Quarterly (REQ) update showing resources and energy exports have hit a high of $310 million. Locked down - Newmont's Granites Mine in the Tanami Desert Newmont this week locked down its Granities Mine, around 540 kilometres north west of Alice Springs in the Northern Territory, following a threat to its staff after a FiFo worker arrived on site testing positive for COVID-19. Meanwhile, the majority of the Queensland population is also locked down following several cases reported this week in Brisbane and Townsville. The QRC renewed its offer for Queensland’s resources sector to assist the State Government with vaccine transport and by providing regional facilities and health staff to support vaccination hubs if needed. Resources and energy exports were contributing more than ever said QRC CEO Ian Macfarlane. QRC CEO Ian Macfarlane “Resource export earnings are estimated to be almost seven percent higher than the record set last financial year, with earnings expected to rise even further to $334 billion in 2021–22,” Mr Macfarlane said. "The resources sector underpins our state and national economy, which is why it’s been so important to keep resources companies operating safely during COVID-19,” he said. “It’s also why the QRC is working so closely with the State Government to work out the best way to keep our FIFO and DIDO workers safe, as well as protect the communities in which they work and live.” Mr Macfarlane said the latest outlook for resource exports shows the world economy was bouncing back from the impact of the COVID-19 pandemic. “Metallurgical coal companies are benefiting from a surge in world steel production, with Australian export volumes expected to increase by around 10 percent to 2023,” he said. “The price for metallurgical coal is also set to increase, with the Chief Economist reporting prices have regained all of the losses incurred due to China’s informal ban in Australia’s coal imports. “There’s also good news for thermal coal producers, with the Japanese thermal coal contract reference price now finalised and set to increase by 60 percent on the previous year.” Queensland’s other powerhouse commodities are also in line for significant growth, notably zinc, with New Century Resources’ Century Mine in North-West Queensland expected to boost plant throughput by 20 percent. MMG’s Dugald River increased its output of zinc by 38 percent year-on-year in the March quarter 2021. Strong demand for LNG from emerging Asian economies is expected to increase by 44 percent due to declining local domestic gas production, the expansion of gas-fired power generation and new LNG infrastructure developments, Mr Macfarlane said. Increasing demand for aluminium was behind a 22 percent rise in prices in the first half of 2021, he said. “World demand for aluminium is expected to remain strong in the second half of 2021 and likely to push prices to an average US$2,130/tonne, which is up 25 percent from 2020. “The positive forecast for resources exports is great news for our sector and great news for Queensland, because it means more money flowing through the state economy, more jobs and increased prosperity for the businesses that provide goods and services to the resources sector.”

Resources remain stalwart as lockdowns spread

Industry Queensland

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