PERTH (miningweekly.com) – Resource CEOs working in Queensland have cited regulatory uncertainty as the biggest concern in the sector, a survey by the Queensland Resources Council (QRC) has found.

The survey results showed that there was a large spike in concern around ‘uncertain and/or poor regulation’ which was now level pegging with concern about the 'state of the global economy' as the largest influence on negative sentiment in the sector.

QRC CEO Michael Roche said the result could be taken as an early warning sign to the newly elected Annastacia Palaszczuk government that industry was looking for some positive action in coming months to remove industry roadblocks.

“While the resources industry has welcomed the stability of royalties, fees and charges in the state budget, the accretion of measures viewed negatively by the sector could be starting to drag down overall sentiment,” Roche said.

“While much of what the government has announced is in line with pre-election announcements – such as banning uranium mining, threatening a premature end to sand mining on North Stradbroke Island, reviewing the approvals for the New Acland Stage 3 project, rejecting a one-stop-shop for environmental approvals and reversing some of the previous government’s Land Court reforms – the sector is now wanting to see more tangible evidence of the pro-resources positioning proclaimed by the government.”

QRC member company CEOs were also asked to answer questions about investment plans and further cost-cutting intentions over the next 12 months.

Roche noted that while many commentators have rushed to declare the end of resource sector investment in Queensland, a number of QRC members have reported that they have significant investment plans for the next 12 months.

“Through the survey of CEOs, we learned of nine companies looking closely at greenfield investment opportunities, 11 more are moving to replace existing capacity, while another three are looking to expand existing operations.

“The bulk of these projects involve capital expenditure of up to A$500-million each, which collectively represents a multibillion-dollar boost to the state’s economy.”

Roche said that, in the near term, there would be a continuing strong focus on reducing unit costs of production.

“QRC member company CEOs were asked whether they had plans to further reduce unit costs of production in the next 6 to 12 months. Four out of five CEOs said yes, with 21% of respondents targeting a reduction of more than 10% and 29% targeting a reduction of 5% to 10%.”