Queensland-based resources companies are struggling with skilled worker shortages, government policy settings, increasing costs, and global economic conditions, according to a local lobby group.
A total of 95 percent of the QRC member CEOs expect skill shortages to impact the profitability of their organisations over the next decade, with almost one in three anticipating a major negative effect on profitability.
Around 75 percent of the CEOs forecast that their demand for graduates of science, technology, engineering, and maths (STEM) programs will grow over the next five years. In addition, 10 percent of the CEOs estimated demand for STEM graduates to grow by over 25 percent.
The CEOs consider whole-of-industry funding and support for STEM career pathway programs such as those provided by the Queensland Minerals and Energy Academy as the most effective means to address the future skills requirements of the industry.
The QRC is calling on the state government to have policies that will attract investments and support the sector, emphasising the role of Queensland as a producer of minerals needed for the global pursuit of net zero.
“The world is looking to Queensland, amongst other countries, to meet surging demand for critical minerals like copper and nickel to build the batteries, solar panels, and electrical vehicles of the future, which will be central to achieving ambitious decarbonisation targets,” QRC Chief Executive Ian Macfarlane said.
“To meet global demand, however, significant new investment is required in Queensland but right now, that’s under a cloud because of recent, sudden changes in economic policy.”
Mr. Macfarlane criticised the Queensland government’s decision to impose the world’s highest coal royalties as the industry already faces challenges related to the rise in the cost of goods.
“Amid heightened concerns about the global economic outlook, a better approach would be for Queensland to offer stable and consistent policy settings to attract long-term investors in a competitive market, both in Australia and internationally,” Mr. Macfarlane said.
4,650 Workers Needed
Earlier, the Australian Resources and Energy Employer Association (AREEA) said that Queensland’s resources and energy sector will need an additional 4,650 workers by the end of 2028.AREEA noted that the number of forecasted additional jobs declined from the previous year’s forecast of 5,560. AREEA also now forecasts six coal projects from 2023 to 2028 to create workforce demand of 2,600, down from its previously forecasted 10 coal projects to create demand for 4,400 jobs over five years.
It said that total project investment slid 20 percent to $14.5 billion (US$9.3 billion), attributed to the implementation of higher coal royalties.
“Several large coal projects were cancelled or deferred indefinitely,” AREEA CEO Steve Knott said. “While still a healthy pipeline, clearly the Queensland government’s snap decision to massively increase coal royalties has taken its toll on investor confidence.”
