Writing a new chapter in Queensland's resources journey

The Hon. Scott Stewart MP, Queensland Minister for Resources

2023 has been a seismic year for Queensland’s resources sector because it marks the start of a new chapter in this state’s rich resources history.

In June, all the world’s eyes were on Brisbane as we hosted the World Mining Congress.

It was the first time in its 65-year history that the Congress was held in Australia, and what an enormous privilege it was that the organisers chose Brisbane and Queensland to host!

More than 3,000 delegates, including more than 200 chief executives from more than 50 countries, saw firsthand the contributions of the resources industry to this great state and the enormous opportunities still before us.

Those opportunities lie in helping the world limit the impacts of climate change by reducing carbon emissions.

The energy transition from fossil fuels to renewable and less-polluting energy sources is driving massive demand for the raw materials needed to decarbonise our energy and industrial systems. In particular, the critical minerals needed for renewable energy generation, electric vehicles, advanced electronics and defence technologies.

The International Energy Agency estimates demand from clean energy technologies for critical minerals such as copper, cobalt, silicon and rare earth elements is expected to quadruple by 2040 to meet the goals of the Paris Agreement.

This means both domestic and global decarbonisation commitments can only be achieved with significant and accelerated growth in the supply, processing, refining and manufacturing of critical minerals.

A strategy for a new resources future

Estimates tell us there is potentially more than $500 billion in critical mineral deposits in Queensland’s North West Minerals Province.

But our ambition is to be more than an exporter of raw materials. We want to capture more of the value chain and have local processing and advanced manufacturing industries – right here in Queensland. That is why Premier Annastacia Palaszczuk unveiled the Queensland Critical Minerals Strategy at the World Mining Congress.

The strategy builds on the $68.5 million Queensland Resources Industry Development Plan released in June 2022. It provides an additional $245 million in investment to focus on and grow the critical minerals sector and advance four key objectives.

The first objective is to 'Move Faster and Smarter', including $75 million in funding for Critical Minerals Zones around Julia Creek and Richmond, and around Mount Isa to support collaborative opportunities that achieve time, resource and capital efficiencies.

The Queensland Government understands the value and opportunity that exists in mine waste at operating and abandoned mine sites. The strategy invests $5 million tosupport exploration and mineral characterisation activities in mine waste and provides for a review of the regulatory framework to support secondary prospectivity opportunities.

Under the second objective, 'Maximise Investment', the Queensland Government has reduced the rent for mineral exploration permits to $0 for five years, supporting companies to redirect funds towards their exploration activities.

This initiative makes Queensland the lowest-cost jurisdiction in Australia to hold mineral exploration tenures and incentivises companies to invest in Queensland. This is supported by a $1 million campaign to profile and promote Queensland through an investor-focused interactive portal.

The third objective of our strategy, to 'Build Value Chains', is crucial to our economic future and includes the $100 million Critical Minerals and Battery Technology Fund, designed to support companies in reaching commercialisation and accelerating the pit-to-product supply chain to meet the growing demand for clean energy technologies.

The fourth objective of our strategy is to 'Foster Research' and environmental, social and governance (ESG) excellence. The Queensland Government will invest $1 million to work with industry to build ESG excellence and meet anticipated future requirements from consumers, investors, local communities and First Nations peoples.

In addition, $8 million will go towards research and development in circular economy and mining, mineral discovery, extraction, processing and recycling.

To support the rollout of this strategy, we are establishing a dedicated critical minerals office – Critical Minerals Queensland.

Critical Minerals Queensland will provide a central point of contact for investors and stakeholders, coordinate activity to develop critical minerals projects, market Queensland internationally and work with the Australian Government.

We have also committed $75 million to build the Queensland Resources Common User Facility in Townsville, which will be a hub to trial production processes for commercialisation. This will enable prospective miners to begin producing mineral samples at scale.

The aim of the facility is to accelerate the development of commercial mining projects and promote investment in mineral manufacturing opportunities in Queensland.

The strategy aligns with other key Queensland plans focussed on building a decarbonised economy. One of these is the Queensland New Industry Development Strategy, released in May 2023.

The strategy focuses on processing, manufacturing, and product development of critical minerals, essential for switching to renewable energy technologies.

The Queensland Battery Industry Strategy is currently being developed to leverage our state’s mining and manufacturing expertise and bring forward a pipeline of battery investment that provides opportunities for regional businesses.

These strategies are helping to achieve the renewable energy and decarbonisation targets outlined in our $62 billion Queensland Energy and Jobs Plan.

This is a plan that could deliver $25.7 billion to Queensland’s economy by 2040.

Other Queensland Government investments include the $5 billion CopperString 2032 project. The largest ever economic development project in North Queensland and the largest expansion to the power grid in Australia, it will connect our world-class North West Minerals Province to the North Queensland Renewable Energy Zone and Townsville.

The project will support 800 direct jobs and thousands of new jobs in critical minerals mining, manufacturing and construction of renewables.

Ready for Tomorrow

The Queensland Critical Minerals Strategy was well received at the World Mining Congress, and that is because it was a result of listening to and working with industry and local communities.

I had the pleasure of hosting a select group of Congress delegates on a tour of north Queensland, showcasing the multi-billion dollar potential of our state’s critical minerals. From Mount Isa to Cloncurry to Townsville, delegates had a chance to see all that Queensland’s geology and geography have to offer.

It is a message that resonated during my recent trade mission with the Premier to South Korea, where we had exciting and fruitful discussions with senior business and government leaders about the next phase of Queensland’s resources journey.

What is the role of other resources?

The development of Queensland's critical minerals sector builds on our strong track record of delivery in traditional resource commodities.

In particular, we remain one of the world’s major suppliers of high-quality metallurgical coal for steelmaking. We exported $55.9 billion of product in the 12 months to May 2023, a 2.3% increase on the previous 12 months.

Steelmaking coal makes up about 85% of the value of Queensland coal exports, and we know it will be a strength of ours for a long time to come. Even as the world transitions to renewables, steelmaking coal will remain an essential and valuable international export commodity for Queensland.

With strong demand for renewable energy equipment such as wind turbines and new pockets of demand opening up in the IndoPacific region, we expect Queensland’s steelmaking coal will be in demand for some time to come.

Similarly, our $66 billion LNG industry is a critical enabler for Queensland’s economy. It provides royalties, direct jobs in the industry, and is vital to our manufacturing sector.

Queensland is doing the heavy lifting when it comes to domestic gas policy and supply in this country, and we are continuing to work on finding new sources. Ensuring more gas supply for the domestic market is one of the key features of the 2023 Queensland Exploration Program (QEP).

Two of the exploration areas will help keep more gas on Australian shores to benefit local businesses and communities, subject to the Australian Market Supply Condition.

From plans to reality

So, as we approach the new year, Queensland stands ready to embrace a new decarbonised future. The pathway to this future runs through the Queensland resources sector.

The plans and strategies the Queensland Government has developed with industry and communities will ensure our great state is ready for the next resources boom.

By transitioning from digging and shipping raw materials to processing and refining our critical minerals and manufacturing high-value products, we will futureproof Queensland's next generation of jobs, diversify and decarbonise our economy, and ensure Queensland’s future sustainable economic prosperity. 