BHP Mitsubishi Alliance (BMA) asset president Adam Lancey shed light on the challenges the mining sector is facing while speaking at the 2024 Queensland Resources Media Club.
Hosted by the Queensland Resources Council on September 24 at the Brisbane Club, the Queensland Resources Media Club is an annual opportunity to foster conversations to help shape the future of Queensland’s resources industry.
Lancey was welcomed at the event’s luncheon discussion, where he first discussed current challenges facing the industry, specifically the coal mining sector.
“Across the mining industry we are facing challenges; inflation pressures; disruption to supply chains; labour constraints and, of course, policy settings that are diminishing Queensland’s capacity to remain competitive alongside other mining regions in Australia and around the world,” Lancey said.
“But, as an industry, we have shown resilience in facing these challenges. Despite operating in an environment that is rapidly changing, we continue to play a key part in meeting the global demand for essential steelmaking minerals.”
BMA specialises in producing steelmaking coal, which is used to construct cars, trains, planes, and infrastructure related to the global energy transition.
However, steelmaking coal is just one commodity in Queensland. The state’s overall mining sector is the largest contributor to its economy, is the largest regional employer, and the largest export industry.
“As an industry we are amongst the largest regional employers in Queensland and our own team members make up a large portion of our local communities,” Lancey said.
“These are the areas where we have a proven track record of adding value in regional Queensland, but they’re also the areas that most concern me when we turn our minds to headwinds facing our industry.”
Earlier this month, the Queensland Government passed the Progressive Coal Royalty Protection (Keep it in the Bank) Bill 2024, amending the coal royalty regime under the Mineral Resources Act 1989 to state “a regulation cannot prescribe coal royalty rates which are lower than those prescribed from time to time”.
This means progressive coal royalties cannot be removed or amended without prior positive endorsement from the Queensland Parliament. BMA has previously expressed discontent over the state’s coal royalty changes.
“The challenge for us as a business – and the industry more broadly – is the attractiveness for capital and investment in Queensland relative to opportunities in other parts of the world,” Lancey said.
“Despite the future opportunities, it is difficult to attract that investment in Queensland. The risks of sudden policy and fiscal changes being made without meaningful consultation with the industry and without consideration of their impact on the business environment have made it harder for Queensland to be competitive for this investment.”
To fix this, Lancey recommended for government policy to give Queensland “a competitive edge” amid growing global demand for steel, as well as “an industrial relations system that delivers productivity, flexibility and competitiveness to drive job creation and wage growth”.
“Constructive dialogue allows us to explore the potential negative impacts of short-sighted policy decisions that might deliver an immediate sugar-hit – to the detriment of investment and to the detriment of future generations of Queenslanders,” Lancey said.
“Our industry is positioned to continue to perform for the benefit of all Queenslanders and the Australian economy, but we must have a government that can deliver stable policies and fiscal settings, practical approval frameworks and trading arrangements to attract the investment needed to produce the resources which underpin the global energy transition.”
Subscribe to Australian Mining and receive the latest news on product announcements, industry developments, commodities and more.
