Resources companies spend $32.7b on Queensland businesses

The Queensland Resources Council’s (QRC) Local Content Report shows resources companies spent $32.7b purchasing goods and services from Queensland companies in FY23 an increase of almost $6b on the previous financial year.

QRC chief executive Janette Hewson says the report confirms the importance of the resources sector to Queensland’s economy goes beyond the direct contribution it generates for our state through royalties and jobs.

“Our report reveals nearly three of every four dollars, or 72%, were spent by resources companies with businesses in Queensland,” she said.

“Buying local means resources companies are supporting Queensland businesses to grow and create more jobs, particularly in the regions.

“The $6b increase in spending reflects the importance that resources companies place on supporting local businesses and working with their local supply chain to unearth new or emerging opportunities from the sector.

“The report revealed two-thirds of QRC member companies run programs to increase opportunities and the capabilities of local suppliers and this is clearly having a positive impact on regional jobs and economies.

“While some of the increase is a result of inflation and rising costs, we know that when the resources sector is strong so too are our regional communities.

“The sector is proud of the contributions it makes and this report reveals the extent and far-reaching impact resources makes on the livelihoods of Queenslanders.”

Ms Hewson says the QRC Local Content report also revealed a significant increase in resources companies engaging with Queensland Indigenous business operators.

“It is very encouraging to see the amount spent with Indigenous businesses increase by 52% from $93.8m to $142.5m,” she said.

“This increase demonstrates the industry’s long-term commitment to support and grow Indigenous participation in the resources sector in regional and remote communities across Queensland.

“This year’s figure continues a trend from the 2017 financial year, during which time resources companies have increased their spend with Indigenous companies by 263%, well above the industry wide spending increase of 103%.”

Ms Hewson says the report again showed the importance of the resources sector to regional Queensland and positioned our sector as a global leader in mining, metals and gas.

“Of the $32.7b spent on goods and services by resources sector companies, more than half, $16.7b, was spent outside southeast Queensland,” she said.

“The results of the Local Content report reinforce the importance of government getting the right policy settings, including a fair and balanced royalty system, to attract the new investment that will drive the resources sector’s continued support of local businesses and jobs.

“Encouragingly, 56% of QRC member companies indicated they expect to increase local spending over the next 12 months.

“It highlights what’s at stake for Queensland’s long term economic prosperity without stable government policies and streamlined approvals to attract new investment as existing resources projects reach the end of production in coming years.”

Case studies that highlight the positive work in local communities from the 2023 Local Content Report include:

• New Hope’s $5m Lagoon Creek Crossing project at its New Acland Mine engaging more than a dozen local suppliers and contractors.
• Senex trialling new hybrid generators to power gas wells supporting local companies and reducing emissions.
• Anglo American’s $158,000 Community Pantry Partnership addressing food insecurity in the Isaac region partnering with Emergency and Long-Term Accommodation Moranbah (ELAM).