THE Queensland Resources Council has repeated its call for the Palaszczuk Government to match the LNP Opposition commitment to a 10-year freeze on all resource royalties.

QRC chief executive Ian Macfarlane said the industry noted the Palaszczuk Government’s commitment today to a five-year freeze for new petroleum royalty arrangements, following its earlier commitment to freeze the rate and threshold for coal and metal royalties for three years.

“The government has recognised that stable royalties provide greater investment and employment certainty for the resources industry.  The LNP promised 12 months ago, if elected, it would stabilise royalties for 10 years,” Mr Macfarlane said.

“The resources sector has been paying more than $5 billion in royalties to the Queensland Government to reinvest in services and infrastructure for all Queenslanders.

“The role of the resources sector is even more important to Queensland with COVID-19’s impact across the state’s economy. The resources sector employs one in seven jobs in Queensland and it contributes more than $220 million to the State’s economy each week," he said.

“The last royalty increase, under the Newman Government in 2012, compounded the regional impact of a global downturn in commodity prices and led to a significant reduction in resource investment and jobs.

“QRC welcomes the use of actual sales rather than an index for calculating gas royalties and the lower rates the model will offer for domestic production.”

Mr Macfarlane said QRC would have preferred the Queensland Government to continue dialogue with the gas industry to better inform the development of the new petroleum royalty arrangements.

“QRC will continue to work with its gas members to ensure the government’s new royalty arrangements are workable and do not detract from their planned investment and employment, particularly in the COVID-19 recovery,” he said.

www.qrc.org.au

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NEW INDEPENDENT modelling from corporate energy adviser Schneider Electric highlights the need for the Queensland Government to plan for a smooth, well managed transition from coal to wind, solar and hydro power. 

The report by Schneider Electric, revealed by Fairfax media today,  highlights  that Queensland's coal power plants will soon become uneconomic to run, as they are pushed out of the market by  cheaper, cleaner, renewable energy. 

The privately owned Gladstone power plant is likely to be the first Queensland coal plant to close earlier than expected, possibly as soon as 2025 according to UBS utilities analyst Tom Allen. 

Queensland Conservation Council urges the State Government not to drag their heels any longer on making solid plans for replacing the six state government owned coal fired power plants, and ensuring that workers have secure, quality jobs to go to, and communities are supported through the transition

Closing and replacing coal power stations with clean energy will create new opportunities and will mean a brighter future for Queensland, the council said.

According to the council, with the average cost of electricity from large scale solar plants in Australia falling dramatically – by a claimed 78 percent between 2010 and 2019 – the path to future prosperity for the state is clear.

"We need to stop relying on dirty fossil fuels and move rapidly towards renewable energy," Queensland Conservation Council director, Louise Matthiesson said. "The transition to a clean, renewable future is both essential and possible. 

"Burning coal has no long-term future for our economy, our health or our environment. Queensland is rich in clean energy resources – including sun and wind – that power new forms of renewable energy. 

 “It’s well beyond time for our politicians to take positive action in the energy arena and replace outdated coal power with cheaper, cleaner renewables,” Ms Matthiesson said. “A well-planned transition to clean, renewable energy can provide Queenslanders with a better, safer future.”

About Queensland Conservation Council

Queensland Conservation Council is a leading independent voice for the environment in Queensland. The council's mission is to protect Queensland’s landscapes, wildlife and climate, conserve its precious natural resources and make the state's businesses and communities more sustainable. Queensland Conservation Council is the state’s peak body for Queensland’s environmental movement, representing over 50 community environment groups across the state. 

www.queenslandsconservation.org.au

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THE RESOURCES industry has kept Queenslanders working through the COVID-19 response and is playing a central role in the economic recovery according to the latest State of the Sector report said the Queensland Resources Council.

QRC chief executive Ian Macfarlane said a survey of the State’s top resource leaders in May found strong momentum in employment growth over the next 12 months.

“Every resource job matters and our sector is doing the heavy lifting with the State’s employment with 63 percent of the companies surveyed maintaining or growing workforces while 5 percent were expecting to increase employment numbers significantly,” Mr Macfarlane said.

“Queensland’s coal and mineral miners were in a substantially better position going into the COVID-19 crisis than the previous commodity price lows five years ago with 50 percent of companies expecting operations to remain in the lowest cost quartile and nearly 90 percent sitting in the bottom half of the cost curve.

“Costs in Queensland’s oil and gas industry have crept higher with all operations remaining in the top half of the cost curve and three quarters in the highest cost quartile," Mr Macfarlane said.

“Part of the sector’s success was its immediate response to the crisis and its ability to work with all levels of government to protect the public health of the communities in which we operate by strictly adhering to the advice of the State’s Chief Health Officer and implementing further measures.

“More than 70 percent of our members said the Queensland Government had performed well or exceptionally well when compared to other Australian jurisdictions and when compared to international jurisdictions 83 percent said the government had performed well or exceptionally well.

“Concerns weighing on the sector include contractions in the global economy, raising capital and the health impacts of the coronavirus around the world.

“Sentiment amongst companies towards the global economy dropped a further 19 percent to a record low from the previous report.”

www.qrc.org.au

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THE Queensland resources sector has continued to deliver more than 80 percent of the State’s exports despite reductions due to market disruptions and price volatility in the wake of the global pandemic COVID-19.

Queensland Resources Council chief executive Ian Macfarlane said today’s release of Queensland Treasury analysis of trade data for the 12 months until the end of April, showed resources was the dominant contributor to the State’s export earnings with coal the most valuable despite a 8.8 percent drop compared with the same period last year.

“Mineral exports were up almost 7 percent or an additional $550 million,” Mr Macfarlane said. “The latest data shows the resource sector has delivered more than $65 billion in exports over the last 12 months or $1.25 billion every week.”

“When the resources industry is working, Queenslanders are earning and Queensland is exporting.”

www.qrc.org.au

Link to Queensland Treasury data:

www.qgso.qld.gov.au/issues/3526/exports-qld-goods-overseas-202004.pdf

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