The Queensland Resources Council’s (QRC) Local Content report has revealed an almost $6 billion increase in the resources sector’s local spend for the 2022-23 financial year.
The QRC report shows that Queensland’s resources companies spent $32.7 billion purchasing goods and services from Queensland companies.
QRC CEO, Janette Hewson, said the report confirms that the importance of the resources sector to the state’s economy goes beyond the direct contribution it generates through royalties and jobs.
“Our report reveals nearly three of every four dollars, or 72 per cent, were spent by resources companies with businesses in Queensland,” Ms Hewson said.
“Buying local means resources companies are supporting Queensland businesses to grow and create more jobs, particularly in the regions.”
Ms Hewson said that the $6 billion increase in spending reflects the importance resources companies place on supporting local businesses and working with their local supply chain to unearth new or emerging opportunities from the sector.
“The report revealed two-thirds of QRC member companies run programs to increase opportunities and the capabilities of local suppliers, and this is clearly having a positive impact on regional jobs and economies.
“While some of the increase is a result of inflation and rising costs, we know that when the resources sector is strong so are our regional communities.
“The sector is proud of the contributions it makes, and this report reveals the extent and far-reaching impact resources makes on the livelihoods of Queenslanders.”
Ms Hewson said the QRC Local Content report also revealed a significant increase in resources companies engaging with Queensland Indigenous business operators.
“It is very encouraging to see the amount spent with Indigenous businesses increase by 52% from $93.8 million to $142.5 million,” Ms Hewson said.
“This increase demonstrates the industry’s long-term commitment to support and grow Indigenous participation in the resources sector in regional and remote communities across Queensland.
“This year’s figure continues a trend from the 2017 financial year, during which time resources companies have increased their spend with Indigenous companies by 263 per cent, well above the industry wide spending increase of 103 per cent.”
Ms Hewson said the report again showed the importance of the resources sector to regional Queensland and positioned the sector as a global leader in mining, metals and gas.
“Of the $32.7 billion spent on goods and services by resources sector companies, more than half, $16.7 billion, was spent outside southeast Queensland,” Ms Hewson said.
“The results of the Local Content report reinforce the importance of the government getting the right policy settings, including a fair and balanced royalty system, to attract the new investment that will drive the resources sector’s continued support of local businesses and jobs.
“Encouragingly, 56 per cent of QRC member companies indicated they expect to increase local spending over the next 12 months.
“It highlights what’s at stake for Queensland’s long-term economic prosperity without stable government policies and streamlined approvals to attract new investment as existing resources projects reach the end of production in the coming years.”
