Resources lifting Queensland’s prosperity

Contributed by Ian Macfarlane, Queensland Resources Council

When it comes to the resources sector in Queensland, the economic influence spans thousands of kilometres in delivering jobs and investment. This was again highlighted with the release of the Queensland Resources Council’s (QRC) economic contribution data for 2018-19 which found the sector supported more than 372,500 jobs and invested $74.3 billion into the state’s economy.

You can’t overestimate the importance of a sector which powers employment on this scale. Resource jobs are not just highly paid, but they are long term jobs including in high tech fields. Directly the sector employed 52,295 people which is a lot of truck drivers, diesel fitters, environmental scientists and port workers.

While there has been significant international headwinds over the past 12 months which have had an impact on trade exposed industries, the resources sector was still able to account for one in five dollars in Queensland’s economy and one in every seven jobs.

Every Queenslander – regardless of where they call home – shares in the wealth of the sector through the royalty taxes it pays to the State Government. This year alone those royalty taxes are worth over $5.4 billion to the State Budget. These royalties provide funding for new hospitals, police stations and schools, or the equivalent wages of 100,000 teachers or 98,000 police, 86,000 nurses.

It’s important our industry stays ahead of the pack internationally by competing for every contract, innovating to stay globally competitive, and earning the support of our governments, and the people who elect them.

Our coking coal will continue to provide an essential ingredient into steel making, our gas will feed the energy needs of Asia and Europe while our alumina, bauxite, copper, gold, lead, mineral sands, silver and zinc will be much sought after in a rapidly urbanising Asia. Something that may surprise people is that all the industry’s economic contributions are achieved while operating within a strict environmental management framework and using only 0.1% of Queensland’s land mass. Our sector adheres to some of the strictest environmental laws in the world and prides itself on its ability to extract resource responsibly.

Regional Advocacy

This year we saw both the south east of Queensland and the regions come together to support the resources sector and resources communities. In regional Queensland the Go Galilee campaign galvanised mining communities in a show of solidarity for the economic benefits of opening the Galilee Basin to mining. The campaign received significant media attention with front pages supporting the campaign in the local papers of Rockhampton, Mackay and Townsville.

Figures from the Office of the Chief Economist show that if the six major coal projects in the Galilee Basin were to proceed they would create 13,900 construction jobs and 12,803 jobs during operations. The Go Galilee campaign was a significant contributor during the Federal election, with the seats of Dawson, Townsville and Capricornia going towards candidates who were very vocal in their support of the campaign.

Prime Minister Scott Morrison returned the Coalition Government to power with the help of these seats and it probably came as no surprise when he said “how good is Queensland?!” in his victory speech.

Having said that, the QRC always has and always will work with both sides of government to ensure we continue to deliver benefits for regional communities and the economy. The people in the south east of Queensland also took part in a separate “Rally for Queensland” prior to the election, calling for all resource projects to be given a fair go and for politicians to publicly support our sector.

Safety

Tragically in the last 12 months, there have been five workers who have died in incidents on mine sites and two quarry workers also lost their lives in what was a very difficult time for both industries. In response the sector supported swift action from the Queensland Government to carry out safety resets on all mine sites.

Safety is the number one priority in the resources sector. It’s not just words, it’s the reality for everyone who works in or with our sector. From day one when the reset was first proposed at a meeting with industry, government and unions, resources companies had made it their top priority.

Each safety reset was implemented according to site-specific circumstances and specific fatal risks. The resources sector always strives to implement the best practices and best technologies to maximise site safety. Every measure we put in place to enhance safety is time well spent.

Our industry will continue to make sure people are fully aware of the serious risks they face at work and they will have an opportunity to raise any safety concerns that they have. Industry has been improving its safety and improving the way it goes about increasing the knowledge of all the workers in the industry. We will continue to work with all unions and the Queensland Government to ensure that safety remains the number one priority for all companies.

Everyone who works in a mine – or any other workplace for that matter – is entitled to leave for work and return home safely to their loved ones.

Investing in New Technologies

Resource companies continue to invest in new technologies to reduce emissions and want an agnostic approach to the energy mix. A recent report commissioned by the QRC – State of the Sector – a quarterly survey of resource CEOs in Queensland – found companies were already investing in a lower carbon world.

Across commodities 40% of surveyed CEOs are currently investing in the research and development of low emission technologies from carbon capture and storage to energy efficiency projects. This expenditure will grow further with 53% planning to spend more on reducing emissions and 20% to substantially increase spending.

Energy efficiency, sometimes called the fifth fuel, is the cheapest and cleanest energy of them all.

For the past nine years Aurizon has reduced emissions from trains by 19% by transitioning its fleet from diesel to electric. In another example, Anglo American has partnered with sustainable energy producer EDL to use excess gas released from coal seams to generate 108 megawatts of power from what was once a waste product. When asked about renewables 90% view the energy source as an opportunity but are equally concerned that without careful planning, intermittent generation can risk energy security and affordability.

Queensland’s economy was built on reliable access to low-cost energy and it remains a vital ingredient for the success of the resources sector. Small increases to energy costs have a large impact on trade exposed industries and lowers our international investment profile.

Queensland’s energy mix must be affordable, reliable and help lower emissions. Resource companies are also doing their part to reduce emissions by incorporating more renewables into their own operations.

In Weipa, Rio Tinto’s 1.7-megawatt solar farm generates 20% of the town’s daytime energy demand saving up to 2.3 million litres of diesel and 1,600 tonnes of carbon dioxide annually. South32’s Cannington mine— one of the world’s largest producers of silver and lead— opened a 7,200-panel, three-megawatt solar farm in December last year which powers the mine’s accommodation, airport and sends additional power to its mining operations cutting emissions by up to 6,000 tonnes per year.

Adani is also investing in renewable capacity. Rugby Run Solar Farm near Moranbah supplies 65 megawatts of renewable power – the equivalent of powering 23,000 regional Queensland homes and businesses each year using more than 247,000 solar panels. Renewables also provide an important new source of demand growth for Queensland’s minerals. Energy from coal generation requires about two kilograms of copper per kilowatt whereas solar requires five kilograms per kilowatt.

Queensland’s resources industry is clearly committed to being part of the global effort to reduce emissions by improving energy efficiency, adopting renewable energy and investing in cogeneration and low emissions research.

Queensland Minerals and Energy Academy

Our education arm, the Queensland Minerals and Energy Academy (or the QMEA, as it is more commonly referred to) has expanded to 74 schools which cover south east Queensland out to Mt Isa and Townsville in the North.

The Queensland resources industry is actively engaged with these schools and teachers along with the Queensland Government to ensure the QMEA – Australia’s largest industry and government education partnership – plays a vital role in lifting participation levels in science, technology, engineering, maths (STEM) and trades.

We all need to do our part, especially the private sector to encourage young minds to embrace STEM fields if we are to deliver a workforce ready for tomorrow’s world.

Our industry is already shifting towards a full range of advanced equipment ranging from automated vehicles to virtual reality tools. We’ll still need truck drivers, but we’ll also need people who can read and write code. Also, QMEA deploys trade experts into the schools who provide hands-on training to the students. From welding to electrical work, the students are given the opportunity to explore a trade and understand which career opportunities there are in trade related fields.

We know we’re having an impact through the QMEA with Queensland Government data showing that over the 14-year life of Academy approximately 20% of students have undertaken a study or employment pathway into engineering and related technologies compared to 13% from non-QMEA schools. And we know the message is spreading far and wide, with huge media interest across the regions, reaching an audience of around a million people.

VALE MICHAEL ROCHE

On behalf of the Queensland resources industry and the hundreds of thousands of men and women who work in it, I pay tribute to the late Michael Roche for his tireless commitment and passion for the resources sector.

Michael served as the Chief Executive of the Queensland Resources Council for 11 years before stepping down in 2016. Michael was a fearless leader and vocal advocate for the sector who championed new ideas that changed the industry forever. He led the organisation through one of the most severe downturns in recent history with determination and professionalism. Michael was a founding member of the Queensland Exploration Council and an honorary life member of the QRC.

Want to see more? Order your free hard copy of the 2019 Yearbook (for only $10 postage) by emailing yearbook@bbminingclub.com.