PERTH (miningweekly.com) – The Queensland resources sector has increased its local spending by 16% over the last 12 months, new data by the Queensland Resources Council (QRC) has shown.

“Expenditure from the resources sector with Queensland suppliers jumped from A$19.3-billion in 2017//18 to A$22.4-billion in 2018/19 which is the highest investment recorded in four years,” said QRC CEO Ian Macfarlane.

“Almost A$70-million was invested with Indigenous businesses which is a 72% increase on the A$40.5-million in 2017/18. The total proportion of expenditure with Queensland suppliers has increased to 71% of all spending to A$31.5-billion.  

“This means jobs now and on-going jobs for regional Queenslanders and companies are benefiting from the significant increase in capabilities from the well-established supply hubs in Mackay, Rockhampton, Gladstone and Toowoomba along with south-east Queensland.”

Macfarlane said that the sector’s economic reach is far greater than the communities in which they operate, with Mackay and Brisbane accounting for the two largest local government areas for spending and neither have a mine or a gas well.

“Queensland’s resources sector understands small businesses are the lifeblood of regional economies and they will be a key part in powering our state’s jobs growth post Covid-19.

“By spending locally the resources sector promotes the long-term sustainability of local economies and builds partnerships with communities through mutually beneficial relationships.

“In the last ten years the sector has spent A$232-billion with local businesses in Queensland.

“A clear message from this year’s case studies is buying locally is not just good business, it’s often a fast-track to innovation through the state’s growing mining, equipment, technology and services sector.”

Macfarlane said the results were calculated before the impacts of Covid-19 and if industry was to continue to spend with local businesses it needed greater certainty around investment.

“The resources sector needs the government to endorse our recovery plan to reduce red tape, streamline project assessment and approval processes and provide royalty stability over 10 years.  The QRC’s comprehensive 40-point plan has been presented to the government’s Queensland Industry Recovery Alliance and all members of Parliament.”