Bowen Basin leads Queensland through COVID-19 recovery

Ian Macfarlane, Chief Executive, Queensland Resources Council

Bowen Basin leads Queensland through COVID-19 recovery

They say a smooth sea does not a sailor make - that it is from the toughest of times that we learn the most.

I’m pleased to say 2020 is a year our industry can look back on with great pride because we’ve met the challenges of COVID head-on and kept going. People have been able to count on resources to help Queensland recover, and a huge part of that recovery is being powered by the Bowen Basin.

But of course, this is nothing new. Queensland’s resources sector has a fantastic story to tell, dating back at least 70,000 years with Australia's first miners, the Aboriginal people, who mined for ochres of red, white and black pigment. Manganese dioxide was a source of black pigment used for painting at the time, while kaolin was a source of white pigment. Lake Moondarra, north of Mount Isa, is in fact the site of an ancient mining industry, dating back more than 1,000 years where basalt outcrops were extensively quarried by the Kalkadoon people to manufacture hard, dense black axes and axe-blanks.

Then, in 1867 came James Nash’s discovery of gold at Gympie, which saved the state from bankruptcy - and from again becoming part of New South Wales. Imagine that – no State of Origin!

And if we look back just 10 years ago, when the Bowen Basin Mining Club was first established, our industry was again relied on to keep performing, this time by dragging our economy out of the Global Financial Crisis.

Here we are in 2020, when it is the resources sector to the rescue again, with the Bowen Basin playing a pivotal role in restoring Queensland’s post- COVID prosperity thanks to its abundant natural resources of ‘black gold’ and gas.

Resources - the bedrock of Queensland’s economy

Our latest economic contribution data shows resources in the Burdekin electorate contributed $3B to the region in 2019-2020 and supported the jobs of more than 18,000 direct and indirect full-time employees. Resources companies also spent close to $900M on goods and services in the region, supporting 556 local businesses and 285 community organisations along the way.

Statewide, resources companies now support the jobs of more than 420,000 people, with 50,000 of these jobs created in the past financial year. Of these jobs, almost 53,000 people are directly employed in resources and more than 367,000 jobs are supported by our sector. This includes people who work for mining machinery suppliers or legal and accounting firms who service the industry, right down to small ‘mum and dad’ businesses.

Our sector added almost $83B to Queensland’s economy in 2019-20, an increase of $5B on the year before. The total number of businesses directly supported by resources rose to 15,200, with companies reporting a 19% increase in spending. $4.5B in royalties also went directly into the state budget to pay for doctors, nurses, teachers, police, schools, hospitals and roads, and resources generated $56.5B - almost 80% of Queensland’s export value for the year.

These figures demonstrate why one in every five dollars in Queensland’s economy and one in six jobs are due to the productivity of our mining, gas and energy sector. They also reveal the significant flow-on benefits to the wider community from having a highperforming resources sector to rely on, in the good times and the bad.

That’s why the Queensland Resources Council makes no apology for standing up for our sector during the 2020 state election. The figures show we had about 83 billion reasons to stand up for the jobs and prosperity created by resources companies, from which all Queenslanders benefit. These jobs and Queensland’s economic stability were absolutely under threat by a Greens policy to quadruple royalty rates over the next four years, and in effect shut our industry down.

Resources - a key player in transition to renewable power

Standing up for our sector, however, doesn’t mean we don't accept the enormous responsibilities that come with being a resource-based industry. Far from it. Queensland is considered to have some of the toughest environmental management laws in the world.

I can tell you that QRC members take great pride in meeting their legal obligations to responsibly manage their operations and, where possible, exceed them to meet community expectations. Our companies employ more environmental scientists than almost any other sector in Queensland, so we have an enormous body of expertise guiding our decisionmaking on a day-to-day basis.

We are now seeing major mining companies competing to reduce emissions and have their green credentials recognised by shareholders and customers.

One example is Anglo American’s commitment to reduce energy consumption through its FutureSmart Mining methods and technology adoption, based on switching to low carbon energy sources and increasing renewables in its energy mix.

It has set 2030 targets to improve energy efficiency and reduce absolute greenhouse gas (GHG) emissions by 30%, and is on track to achieve its 2020 targets of an 8% improvement in energy use and 22% saving in GHG emissions. This is all against its projected ‘business as usual’ consumption and is just one example amongst many others of a Queensland company innovating, adapting and funding its way towards a lower emission future.

Resources companies already play an integral role in the production of renewables in Queensland. We produce the copper and rare earths that make magnets for wind farm generators and electric car motors; we produce coking coal to make steel to build wind farm towers; and we produce silica and limestone to make the glass and bauxite to produce aluminum for solar panels.

We also supply minerals to make batteries and fast-response baseload power to back up solar farms at night and on wind farms when conditions are unreliable. We’re looking forward to working productively with Queensland’s new Environment Minister, Meaghan Scanlon, so we can continue to be an active participant in this space.

Internationally, the QRC supports Australia’s participation in global agreements including emission reduction commitments from major emitting nations. The resources sector also supports an orderly transition to a low-carbon future, including increasing renewable power generation in Queensland and nationally. The resources sector itself is a major user of renewable energy - diesel generation is not cheap in the middle of nowhere – and a key participant in renewable energy projects across Queensland and beyond.

One example is Shell’s Gangarri Solar Project, a 120-megawatt solar farm located near Wandoan on the Western Downs. The project will generate solar power from about 330,000 photovoltaic panels – enough to run 50,000 homes – and reduce emissions by around 300,000 tonnes of carbon dioxide per annum.

Queensland’s world first coal seam gas (CSG) to liquid natural gas export industry has also seen it become a hub of petroleum engineering expertise. These skills will serve Queensland well as we work to reduce CSG emissions and build our capacity to produce and export hydrogen.

There are already trials underway to make carbon-neutral methane from hydrogen and to blend hydrogen into our existing gas networks. That’s why the QRC welcomes the Palaszczuk government's increased focus on hydrogen through the establishment of a new ministry to promote this emerging energy source. We look forward to working with the new Hydrogen Minister, Mick de Brenni, ably supported by Assistant Minister, Lance McCallum, who knows our industry well.

The QRC has also thrown its full support behind the innovative CopperString Project in North West Queensland, the Queensland Government’s renewable energy company CleanCo and the continued operation of the government’s fleet of coal and gas-fired generators.

The manufacturing of renewable energy infrastructure and a myriad of everyday items relies on coal, metals and gas which again reinforces why the resources sector is part of the solution to addressing climate change. With the right policy settings and industry participation in decision-making, Queensland has the potential to become Australia’s ‘Energy State’ – a concept the community will be hearing more about from the QRC in the future.

Resources Industry Development Plan - a blueprint for growth

As for the future, I’m pleased to say the QRC is already working constructively with the newly re-elected Palaszczuk government. We have established a solid platform for a strong and consultative relationship over the next four years in the form of the Queensland Resources Industry Development Plan, jointly announced by Treasurer Cameron Dick and myself in Mackay in October.

This plan will create a blueprint for future growth in terms of employment, investment and economic activity, not just for the next term of government, but for decades to come. It will guide expansion, just as the Central Queensland Coal Associates Agreement set up the industry’s development in the 1960s. The foresight of industry and government leaders from this time is still benefitting Queenslanders today.

We’ve seen this during COVID-19, when the resources industry has been able to keep Queenslanders working, earning and spending in their communities at a time when other sectors were less fortunate. We are looking forward to working with Queensland’s new Minister for Resources, Scott Stewart, to bring our industry development plan to life and to create long-term economic stability and job opportunities.

Resources - the highest private Indigenous employer in Qld

Our members will also continue to work closely with the Queensland Government and new Indigenous Affairs Minister, Craig Crawford, to maximise Indigenous participation in our workforce. Our members currently provide more employment opportunities for Indigenous Queenslanders than any other private sector in this state.

And I’m not just talking about jobs, but also career paths that are opening new doors and new ways for Indigenous families to participate and excel in resources. I am proud to say that at 4%, the proportion of Indigenous Queenslanders working in the resources sector is on par with the proportion of Aboriginal and Torres Strait Islanders living in Queensland.

School-based skills training yields results

There is no doubt the future of our sector relies on a skilled workforce. Playing a key role in ensuring a consistent skills pipeline into our sector is the QRC’s education arm, the Queensland Minerals and Energy Academy (QMEA). The academy now partners with 80 schools, including seven schools based in the Burdekin electorate: Ayr, Bowen, Collinsville, Moranbah, Clermont and Dysart state high schools and Middlemount Community School.

Most of the more than $1.4M annual funding for the QMEA comes directly from QRC members, with some additional funding provided by the Queensland Government. This investment is worth its weight in gold and is paying dividends every day.

The latest statistics provided by the government in its ‘Next Step Destination Data’ reveal that, of the QMEA students seeking an employment and/or study pathway, 25% entered engineering and related technologies compared to 15% of students from non-QMEA schools. This is a fantastic outcome on behalf of our members.

We know the Queensland Government highly values our program, and we look forward to working with Skills Minister Di Farmer and Education Minister Grace Grace to continue this vital work.

Female workforce participation on the rise

Through our Women in Resources Action Plan and collaboration with Women in Mining and Resources Queensland, we have increased the proportion of women in our sector from 6% in 2006 to 16.5% today. We will continue to build on this number, but it’s very pleasing to see women are now increasingly directly sharing in the wealth of our sector through highly paid careers and opportunities.

We look forward to working with new Attorney General Shannon Fentiman in her role as Minister for Women, and we appreciate the support our industry has received to improve gender balance from successive Queensland governments.

Bowen Basin Mining Club reaches 10-year milestone

Before I sign off, I want to congratulate the Bowen Basin Mining Club (BBMC) on its 10-year anniversary.

From its first event in Mackay in 2010, the BBMC has grown to become a significant mining industry networking resource, with its influence extending nationally. This is just the sort of grassroots support that our sector needs to ensure it maintains its social license to operate. It is highly valued by QRC members.

I’ll finish as I started by stating that Queensland’s resources sector has much to be proud of. We can take this feeling of optimism into 2021 and the years ahead as we continue to be the engine room for the state’s economy, a major provider of employment opportunities, an innovator in the quest to lower emissions and broaden Queensland’s renewable energy base, and a leader in industry training and education.

I don’t need to say here’s to smoother times next year, because as 2020 has shown, the resources sector is here for the tough times too. You can count on us to help Queensland recover. •