Results from the Queensland Resources Council (QRC) CEO Sentiment Survey, released yesterday, suggest that the state’s mining executives are taking some comfort from the signs of recovery in the global economy.
Despite improvements to coal demand over the last two quarters, QRC chief executive Michael Roche remained cautious, saying it would be difficult to predict the strength of the upturn.
“We do not fully understand how the global private sector will respond to lingering credit constraints and the unwinding of large stimulus packages around the world,” he said, commenting on the survey results in the September quarter edition of the QRC State of the Sector report.
“More positively, our strongest trading region, Asia, has rebounded strongly and appears to be leading the global recovery.”
According to Roche, there is growing concern amongst executives surrounding the “uncertain and poor regulation” of the industry.
“This is both good news and bad,” he said.
“It is good that the CEOs are thinking about growth and expansion, but bad that they see government as more of a hindrance than help.
“The industrialisation and urbanisation of the developing world and the associated increase in demand for resources should be forming the basis for enormous opportunity in the sector.
“However, having what the world wants will not guarantee new investments.
“There is also no guarantee that Queensland’s comparative advantage in an increasingly competitive global market will be maintained.”