PERTH (miningweekly.com) – The Queensland Resource Council (QRC) on Thursday said that the state government’s plans to introduce new laws governing fly-in, fly-out (Fifo) operations, were “deeply concerning” and could pose a serious threat to investor confidence.

The new legislation would not allow a 100% Fifo operation for new mines, if nearby regional towns had a capable workforce, and would compel existing 100% Fifo operations to consider locals for employment.

The legislative changes came in the wake of a Fifo report released in October last year, in which a review panel made a number of recommendations, including against retrospective actions to alter existing approvals and existing workforce.

The panel also made recommendations with respect to approval conditions governing the sourcing of operational workforce, saying the government could favourably influence the economic outcomes for regional communities by conditioning new resource projects to prepare a workforce plan that supported employment in the nearby communities.

“This government believes workers should have choices,” Minister for State Development and Natural Resources and Mines Dr Anthony Lynham said on Thursday.

“If people want to live in regional communities they should have the opportunity to apply for jobs at nearby resource projects.”

The Minister told Parliament that the government’s plans would deliver strong and sustainable resource communities for Queenslanders.

“This will build communities, increase opportunities for employment and allow competitive local businesses to get the maximum benefit from the projects,” he told Parliament.

“Procurement plans are also required to ensure competitive and capable local businesses are given full, fair and reasonable opportunity to win contracts on these large resource projects.”

However, the QRC said that many of the proposed changes flagged by Lynham would not help existing and future resource operations to compete or thrive in an increasingly competitive global market.

“At a time when the resources sector is facing very difficult market conditions, more red tape will heap extra costs upon resource companies, which are doing everything possible to compete globally and employ thousands of Queenslanders,” said QRC CEO Michael Roche.

He noted that while the QRC accepted that all parties in the Queensland Parliament did not support future 100% mining operations where there are nearby towns that had a capable workforce, the industry body did not support any retrospective regulatory action against existing mines.

“The current arrangements at two Bowen basin mines in relation to Fifo were put in place by the previous government to address what was then an extremely tight labour market and should not be tampered with for political purposes.

“We understand circumstances have changed since this time, but retrospective action is never welcome. The rules of the game should not be changed after they have been agreed to.

“Governments are supposed to stimulate the economy and businesses to grow jobs and revenue but additional regulatory costs run counter to this objective.”