Queensland’s reputation as a prime destination for resources investment faces further risk if the government proceeds with budget cuts to the resources department.
The state’s appeal as a stable and low-risk jurisdiction has already declined, as highlighted in the Fraser Institute Annual Survey of Mining Companies 2023. Queensland ranked outside the global Top 10, lagging behind Western Australia and the Northern Territory as a preferred location for mining investment.
The Fraser Institute survey assessed factors such as access to pre-competitive data, including geophysics, resource characterization, and geochemistry. Industry leaders warn that reducing funding for these programs could weaken Queensland’s standing even further.
Kate Dickson, general manager of operations at the Association of Mining and Exploration Companies (AMEC), says that resources remain Queensland’s economic backbone. Cutting funding, she says, would be counterproductive.
“Programs like the Collaborative Exploration Initiative (CEI) grants deliver tenfold returns on investment,” says Ms Dickson. “Reducing these initiatives would have a significant impact on the industry.”
Dickson pointed to the Geological Survey’s role in providing essential pre-competitive data, which supports investment decisions and strengthens Queensland’s appeal.
“The Geological Survey’s work, including online webinars with the Sustainable Minerals Institute, plays a crucial role in attracting investors,” she says. “We support these technical roadshows and broader industry exposure.”
Currently, the CEI grants have funding secured only for one $5 million round beyond June. Industry stakeholders fear that without continued financial support, exploration and innovation could stall.
Meanwhile, Treasurer David Janetzki has identified cost overruns and unfunded services amounting to $217.8 billion, with a per capita debt of $40,000. The LNP government aims to reduce this burden.
“Labor’s financial mismanagement has built up over a decade, and it is our responsibility to fix it,” Janetzki says. “We are tackling this challenge head-on.”
The government has already scrapped the $37 billion Pioneer-Burdekin pumped hydro project, established the Productivity Commission, and created Queensland Government Consulting.
“We are carefully reviewing the budget to ensure we meet our commitments, including addressing youth crime, health, housing, and cost-of-living issues,” he says.
Under the new administration, resources now share a broader portfolio with manufacturing, regional, and rural development. Dickson stated that AMEC is confident these departments will work well together.
The association is finalising its budget submission, which is due to be available on its website in this month (February25).