PERTH (miningweekly.com) – The Queensland resources sector spent A$37.9-billion in wages and salaries, goods and services and community contributions over the last financial year, the Queensland Resources Council (QRC) reported on Tuesday.

QRC CEO Michael Roche said independent analysis also showed that the direct spending generated an additional A$37.7-billion in ‘second round value-add’ economic activity.

“What this confirms is that once more the minerals and energy sector was responsible directly and indirectly for one in every four dollars in the state’s economy and almost one in every five jobs,” Roche said.

“From a starting point of 43 000 direct employees – excluding contractors – an additional 400 000 full-time equivalent jobs were generated, with almost half those in the Brisbane region.

“This is the result of the very high levels of expenditure, their capital intensity and the resources sector’s significant reach across other industry sectors in Queensland such as construction and transport.”

The coal industry spending represented just over half of the sector’s A$37.9-billion cash injection to Queensland in 2012/13 with oil and gas ramping up to a 31% share and metals contributing 14%.

“Oil and gas industry spending of A$11.7-billion was a big factor in offsetting the well-publicised cost-cutting and investment slowdown in the coal industry,” Roche said.

He noted that the challenges facing the Queensland coal industry were well documented as the transition from investment to production took hold.

Meanwhile, the first exports of liquefied natural gas are scheduled from new processing plants on Curtis Island in 2014, which Roche said would be another milestone in the "transition timetable" as Queensland came off a decade of massive investment in the state’s future.

“In 2013/14, we expect to see another 12 months of strong investment from oil and gas but it remains to be seen whether this will be sufficient to offset continuing belt-tightening in the coal sector.

‘The Queensland story for the next few years is about translating a golden period of investment into sales of minerals and energy resources along with the expertise and the technology developed to win them.”

Roche pointed out that an Australian Bureau of Statistics breakdown of resources sector spending across Queensland in 2012/13 revealed an almost 81% jump to A$2-billion on the Darling Downs and a 13% increase in the Brisbane region to A$16.5-billion.

“The increase in gas exploration and development expenditure is obvious on the Darling Downs while goods and services purchases were the drivers for Brisbane’s improved result,” he said.

The Mackay region – comprising the city of Mackay and the northern Bowen basin coal region – endured a 12% drop in spending as a result of the coal industry’s belt tightening while the North West also felt the sting of soft global markets, high production costs and a high dollar.

“The state’s resources diversity has delivered a record economic contribution to the people of Queensland but there’s also a salutary reminder that our hard won reputation as a minerals and energy supplier of choice should not be taken for granted,” Roche said.