Queensland’s future depends on resources

11 June 2019

The Association of Mining and Exploration companies says the release of the 2019-20 Queensland State Budget has once again highlighted how dependent the state is on a strong and healthy resources sector with royalties the largest driver of growth in 2018-19. 

“With stamp duty and GST income significantly reduced, the expected $5b income the State will receive from royalties is critical to its ability to meet its targets,” said Warren Pearce, Chief Executive Officer, Association of Mining and Exploration Companies (AMEC). 

A 38% increase in royalties is forecasted from base and precious metal and other minerals from $389m in 2018-19 to $538m in 2019-20.

“Queensland’s future prosperity is heavily dependent on the health of its mining resources sector and the planned operating surplus is only possible because exploration and mining companies have continued to invest in Queensland.”

“The $30m commitment for a new common user rail freight terminal in Townsville and reducing rail access charges on the Mt. Isa - Townsville line sends a strong message to investors that Queensland is prepared to do business.” 

“Mines are not developed overnight, and it is vital that Queensland has a long-term strategy to realise its mineral wealth in areas such as the North West Minerals Province. Exploration is up by 13% as the search for battery minerals intensifies but Queensland needs to continue efforts to attract further investment into the State.” 

“Investors need transparency and certainty and it is therefore very pleasing to see the $3.6m Collaborative Exploration Initiative to encourage greenfields mineral exploration is being continued.” 

The Geoscience Data Modernisation Program to enable data-driven exploration will receive another $3.35m in funding under the overall Strategic Resources Exploration Program. 
  
 “We are also pleased to see that the Government has not changed the royalty regime which will encourage exploration and investment.”  

“Jobs, revenues and royalties are key to Queensland’s growth and can be delivered by a strong mining sector. It is vital that the Queensland government continues to demonstrate its strong support for the resources industry, “said Mr Pearce.