New and expanding coal projects are underpinning more than a third of Queensland’s major pipeline of resource projects worth billions and 20,000 jobs if they go ahead.
But mining companies say approvals processes and unstable government policy settings were making it difficult for them to invest in assets and long-term plans.
This story is part of The Courier-Mail’s special Future Queensland: Resources series that reveals the truth about the contribution the much-maligned resources industry makes to Queensland. You can read all of our coverage on the special topic page here.
The latest report by the Department of Industry, Science and Resources Office of the Chief Economist named 98 projects in Queensland as new, expansion or reactivation with estimated commercial operation start dates up to 2029.
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Among the billions worth of projects are 38 for thermal and metallurgical coal, while another 12 are for critical minerals high purity alumina, copper, cobalt, zinc, nickel and vanadium.
Queensland Resources Council CEO Janette Hewson said the pipeline of projects had the potential to meet global demand and drive the future success of the state across all commodities including coal, gas, metals and the emerging critical minerals industry.
But she said they are also what is at risk if governments didn’t provide the “necessary stable policy and regulatory settings” that encouraged investment and provided a streamlined approvals process.
Coal at the Wiggins Island Coal Export Terminal.
“All mines come to an end at some stage and it’s crucial that new projects come online to provide the jobs and economic prosperity the resources sector provides,” she said.
“Thousands of workers and their families in the Bowen Basin will rely on new projects opening up to secure their ongoing employment as existing mines reach their end of production over coming years and decades.”
In April, the Minerals Council of Australia reported the country was missing out on an average $68 billion worth of potential investment every year, as major mining projects dropped off the major projects list.
MCA found that only five per cent of projects at the feasibility stage move to a favourable financial decision each year, only 20 per cent of projects that debut on the list are progressed to completion, while 80 per cent of projects are abandoned altogether.
Bowen Coking Coal is among the companies on the list looking to invest in new projects and expand its existing New Lenton operations, subject to Federal environmental approvals.
They have invested over $450m into opening Queensland metallurgical coal mines over the past four years including two pits at the Burton Complex near Moranbah.
But uncertainty had halted plans for their proposed $52m Comet Ridge project.
Bowen Coking Coal executive chairman Nick Jorss said there were a number of potential mining projects in Queensland that could be brought into production, but policy settings and high taxes risked them not going ahead.
“Approval times for projects have blown out significantly since 2008,” he said.
“We are seeing increasing requirements and duplication of red and green tape between state and federal regimes.
“The list of new hurdles is long and increasing, including talk of a new federal environmental protection agency.
Coal has the potential to be lucrative to the Queensland economy.
“I believe much can be done to streamline approvals and eliminate unnecessary delays and duplication of regulations in Queensland, while retaining world’s best practice environmental standards.”
Mr Jorss said Queensland’s highest in the world royalty rates was making it less competitive to export and increased the risk of driving investment overseas
He said Bowen Coking Coal was paying $60m annual in royalties.
“I’m keen to engage with governments at all levels to ensure that royalties do not have the consequence of driving down investment in our industry, putting our employees, local communities, and the Australian economy at risk,” he said.
Also on the major projects list is Whitehaven Coal’s proposed new open-cut thermal and met coal mine Winchester South, which is 30km southeast of Moranbah and adjacent to their existing Daunia mine.
Once operational, the mine is expected to produce up to 17 million tonnes per annum of “run-of-mine” production to supply the international market.
In February, the Queensland Department of Environment, Science and Innovation (DESI) approved the projects Draft Environmental Authority.
But the Australian Conservation Foundation and Mackay Conservation Group, represented by the Environment Defenders Office, have challenged the approval in the Queensland Land Court.
Federal EPBC approval is also required prior to project commencement.
Whitehaven Managing Director and CEO Paul Flynn said the process means the project was “likely still some years away from operations”.
“It’s becoming increasingly difficult to get coal mining projects approved, which is leading to an under investment in assets and, in the not-to-distant future, an expected supply shortfall,” he said.
“At an industry level, an increasingly lengthy, complex and uncertain approval regime hurts our industry and the local jobs and small businesses we support.
“These delays put this investment at risk while also creating uncertainty for our closest trading partners in the Asian region who rely on us for critical resources and energy security.”
Resources and Critical Minerals Minister Scott Stewart said the Miles government had overseen at least $83.5 billion in private sector investment in Queensland’s mining sector.
“Exploration is the lifeblood of the resources sector and is essential to maintain a pipeline of new projects and jobs into the future,” he said.
Mr Stewart said Queensland was one of the world’s largest producers of bauxite, alumina, zinc and had significant identified reserves of critical minerals like vanadium and cobalt.
The International Energy Agency estimates demand for critical minerals such as vanadium, cobalt, tungsten and rare earth elements is expected to quadruple by 2040.
“This means both domestic and global commitments cannot be achieved without significant and accelerated growth in the supply, processing, refining and manufacturing of critical minerals,” he said.
Launched 12 months ago, Mt Stewart said the Queensland Critical Minerals Strategy (QCMS) was the state’s blueprint to meet the challenges and grasp the opportunities in the years ahead.
QCMS oversees $315 million of investment into the Queensland critical minerals sector.
“In the last year we have already delivered by reducing the rent for mineral exploration permits to zero for five years,” he said.
“This initiative makes Queensland the lowest cost jurisdiction in Australia to hold mineral exploration tenures and incentivises companies to invest in Queensland.”
He said $75 million in funding had been committed for Critical Minerals Zones in North Queensland in areas around Julia Creek and Richmond to support the vanadium industry and around Mount Isa to support secondary processing opportunities.
Mr Stewart said feedback he received during a trade mission to the United States in December was “overwhelmingly positive” about the state’s approvals process and its pace compared to America and other places throughout the world.