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Mining injects billions into Queensland businesses

Queensland critical minerals QRC

A new report released by the Queensland Resources Council (QRC) shows 77 per cent of all purchases by QRC member companies during 2021–2022 was spent locally, totalling $26.8 billion.

The data shows more than three in every four dollars of purchases made by Queensland mining and energy companies was spent with a business located in Queensland.

“There’s no better way to build a strong social license to operate with the Queensland community than for resources companies to provide opportunities for local businesses to be part of our industry’s extensive supply chain,” QRC chief executive Ian Macfarlane said.

“Local suppliers are absolutely critical to the long-term success of the resources sector because they understand our needs and can collaborate with companies on improvements, often at lower cost than other suppliers.”

Overall, QRC member companies spent $34.9 billion on goods and services over the 12-month period, with $7.6 billion (22 per cent) spent with interstate or New Zealand vendors and $0.5 billion (1.5 per cent) on overseas purchases.

“Using local suppliers reduces transport costs, minimises greenhouse gas emissions and offers better supply chain resilience, which we’ve seen the value of during periods of global disruption due to the pandemic,” Macfarlane said.

“Buying locally also benefits regional economies and communities by creating new business opportunities, employment and sustainable growth.”

The report also said nearly half of all QRC members ran programs to increase opportunities and build on the capabilities of local suppliers through pre-qualification workshops, support in upgrading safety systems, training and mentoring programs and contractor forums.

Additionally, mining and energy companies spent $93.8 million with 108 Indigenous businesses in Queensland in 2021–2022, representing a 13 per cent increase in expenditure on the previous year.

“This is a clear sign local suppliers who rose to the challenge during Covid are using their increased capabilities to push for new opportunities to provide goods and services to Queensland’s mining and energy sector,” Macfarlane said.

“This is a fantastic outcome for resources companies and for Queensland suppliers.”

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