The need to continue to provide subsidies for mineral exploration has been brought home to government this week.

Queensland Resources Council chief executive Ian Macfarlane told the Queensland Exploration Council’s Tech Summit that the state’s economy relied on a healthy mining industry. 

Mr Macfarlane, a former federal coalition industry minister, said he was familiar with the exercise of subsidies and was aware that the international competition was sponsoring their industries including mining and processing to a larger degree. 

Main image: Critical Minerals Projects in Queensland. Left: key to main image

Governments needed to back exploration more to help domestic industry do what it does best for the economy, Mr Macfarlane said.

“We should aspire to manufacturing, but we should also do what we do best, and we mine better than anyone else in the world,” Mr Macfarlane said.

“Our challenge, though, is to make sure we have the exploration and discoveries that ensure that those mines happen in the future. 

“And that’s a combination of a couple of things. Why would you mine in Australia? Well, because the geology here is absolutely fantastic. You’ve just got to find it. It’s an old continent. You have to get through the overburden, so to speak. You have to be able to see what’s underneath. 

“And again, technology and innovation in Australia leads the world in getting through that upper level of the earth’s crust and seeing what’s below it. 

Related: The Queensland Resources Industry Development Plan 

“The other thing we need, of course, is a stable regulatory environment. And I congratulate (Resources Minister) Scott Stewart and the government for what they’ve done so far… it’s not quite enough yet, but we’re hoping for more.”

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Companies considering investment in Queensland were turned off by the unheralded 2022 budget increase in coal royalties, Mr Macfarlane said. This included investment in critical minerals projects.

“We don’t think paying $18 billion in royalty last year was a fair go, and we’ll continue to discuss that, he said. 

“And we do have the CEOs running our current companies that have a bright outlook on where Queensland can be. Yes, they are concerned, as I’ve mentioned, that it is their primary concern about the regulatory framework they’re working under. 

“But as the minister said, the opportunity that lies in the global transition to lower emission technology is enormous and particularly enormous for Queensland. Don’t think we’ve got that to ourself, but we can be competitive. 

“If we can attract those billions of dollars it takes to get a new mine up and operating. If we can get the processes which the state government is supporting that actually see that processing take place, then we will have an extraordinarily bright future. 

“Our traditional mines will still exist. You can’t build wind towers or electric cars without selling coal. Other countries have made different decisions to Australia, as is their sovereign right, as to whether or not they’ll use thermal coal in their energy mix and nuclear for that matter.

“But in reality, there is still a strong future for thermal coal, at least for two, maybe three decades. Who really knows what’s around the corner?”

Video and audio of the QEC Tech Summit is being uploaded. Check the QEC website for availability.