Exploration investment vital to economic development for Queenslanders
Click here to view the Queensland Exploration Scorecard 2022 report
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The Queensland Resources Council (QRC) together with its exploration arm, the Queensland Exploration Council (QEC), released the results of the 12th annual Exploration Scorecard survey in Brisbane today.
The “Investment Required for the Future” report revealed the road to pandemic recovery is closer than ever, with almost half of the exploration companies responding to the industry sentiment survey forecasting a significant boost in expenditure for the year ahead.
The report found while the pandemic continued to impact the availability of skilled workers and create supply chain challenges over the past 12 months, the next biggest concern for explorers is policy uncertainty in Queensland.
QRC Chief Executive Ian Macfarlane said the Queensland Government’s decision to introduce three new tiers of coal royalty taxes, which increased the top royalty tier from 15 to 40 per cent, has blindsided Queensland’s resources sector.
“The survey results show the royalty hike on coal producers is a significant concern for explorers in other commodities too, given the doubt it raises about the stability of investment conditions in Queensland,” he said.
Mr Macfarlane said geopolitics and the Northern Hemisphere energy crisis present both opportunities to be a global leader in energy security and challenges for the resources sector including exploration.
“Queensland’s high-quality coal and gas are helping fill a global supply squeeze in the immediate to medium term.
“As countries continue their net zero emissions trajectories, there is a clear and sustained role for Queensland’s thermal coal and gas, and in particular for metallurgical coal which is needed for lower emissions infrastructure.
“Queensland’s ability to deliver on its future potential in mineral and energy resources will depend on having a supportive policy framework in place,” Mr Macfarlane said.
QEC Chair Kim Wainwright said the Exploration Scorecard is both a pulse check for investor sentiment and a roadmap for future investment opportunities in the Sunshine State.
“Investment in exploration is based on confidence; confidence in the investment environment, confidence in a stable regulatory environment and confidence that we have the people and technologies to bring these vital resources to the marketplace,” Ms Wainwright said.
“We know Queensland is a world-leading location to invest. Our resources industry continues to model leading practice ESG credentials, while boasting some of the most talented geologists and exploration professionals in the world to unearth our incredibly diverse commodity potential,” Ms Wainwright said.
“When all stakeholders work together to ensure these critical elements line up, Queensland can reach its full economic potential,” she said.
Ms Wainwright, Chair of the exploration-focused member organisation QEC, said there was a bright path ahead for the resources sector based on forecasted activity in exploration and drilling for the 12-month period to June 2023.
“The outlook for exploration expenditure in Queensland is positive,” she said.
“Almost half of our explorer survey respondents have forecast an increase in spend of at least 10 per cent, with more than a quarter indicating they will spend more than 25 per cent more on exploration activities in 2022-23,” Ms Wainwright said.
“For drillers working in the resources sector, the 12-month outlook is also extremely positive. More than 40 per cent of driller survey respondents expect activity to significantly increase by more than 25 per cent in the same period.”
Ms Wainwright said the survey results also showed positive sentiment towards Queensland’s resource prospectivity and endowment, pre-competitive geoscientific data and the level of assistance provided by the Queensland Department of Resources.
“The QEC looks forward to strengthening our existing partnership with the Department of Resources and industry to turn prospectivity into reality and lay the foundation for investment in Queensland’s most important economic sector – resources,” Ms Wainwright said.
