The resources and energy exploration sector is losing confidence to the extent that it is likely to affect future development.

The prognosis is contained in the annual Exploration Scorecard report released by the Queensland Resources Council (QRC) and its exploration arm, the Queensland Exploration Council (QEC). 

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The report revealed a sector deflated by state and federal government policy, Queensland’s new royalty taxes and other concerns, the QRC said.

The sentiment survey of more than 60 exploration companies showed policy changes were affecting the mindset of Queensland’s exploration industry, QRC chief executive Ian Macfarlane said.

The report, which surveyed 18 key operating factors, revealed that 15 of them ranked negatively, underlining growing concerns among explorers. 

Key concerns included policy uncertainty, increased costs due to inflation, the impact of environmental regulations, and royalty tax rates, the QEC said.

The results were down on the previous year, Mr Macfarlane said.

“Queensland’s resources ‘nest egg’ has provided generations of Queenslanders with economic stability, jobs and business opportunities, but explorers are concerned that government policy decisions were sapping industry confidence and have created uncertainty,” he said.

“Perception shapes reality, so we need more proactive engagement and consultation between government and industry to ensure Queensland is in a position to supply the minerals and materials the world needs to decarbonise.”

A strong resources sector in the future relied on current exploration, QEC chair Kim Wainwright said.  

“Mining projects have a long lead time, so we need to have policies in place now that provide investors with the long-term confidence they need to invest in exploration in Queensland,” Ms Wainwright said.  

“The world-class mines and energy projects that fuel Queensland’s economy all have one common origin – a thriving exploration industry.

“The Exploration Scorecard is an invaluable source of information for industry and policy makers, and it’s clear a more collaborative approach is needed to support the ongoing prosperity of our state. 

“Strategic partnerships to develop competitive commercial settings are crucial to attracting investment in exploration, so these results are a call to action for all stakeholders to work together to shape a positive future for Queensland.”