Government policy and regulatory uncertainty are the biggest concerns for the state’s resources sector according to the Queensland Resources Council (QRC).

It threatens new investment and jobs the newly released State of the Sector report shows.

On the positive side, QRC member companies remained confident about continued strong demand for Queensland’s commodities the report said.

The report made note that there was good reason to be optimistic about the industry’s future with a few caveats QRC Chief Executive Officer Janette Hewson said.

“As the State Election approaches, our message to all political parties is that balanced, stable and consistent policy settings are critical to securing the investment that will ensure the resources sector can continue to underpin Queensland’s economic prosperity in the decades ahead,” Ms Hewson said.

“The global energy transition is presenting new opportunities for all Queensland’s resources, from coal, gas, metals and critical minerals.

“56 per cent of member company CEOs believe the global decarbonisation transition will lead to increased and sustained demand for Queensland commodities, including steelmaking coal which is used for wind turbines, solar panels and electric vehicles,” Ms Hewson said.

The QRC is calling on all political parties to listen to industry concerns Mrs Hewson said.

“The royalties increase has added to rising operating costs, which have been identified by member companies as another significant concern for the industry,” Ms Hewson said.

“It’s not just coal producers who are expressing concerns, but QRC member companies involved in other commodities say the sudden policy change has significantly increased the risk in making such large investment decisions.” 

“71 per cent of non-coal company CEOs say concerns over royalties have decreased the likelihood of new projects.” 

The State of the Sector report also showed the resources sector’s strong commitment to taking action to reduce emissions and waste.

“The Queensland resources sector has a lot to be proud of beyond its $117 billion contribution to the Queensland economy and the 530,000 jobs it supports,” Ms Hewson said.