The Queensland Resources Council has predicted a ‘decade of opportunity’ for the State, saying that the annual value of its resources sector could increase by 60% to more than $78 billion by 2020.
In a ‘best scenario’ analysis prepared for the State Treasurer, the QRC reports that the possible increase in revenue will come from various resource projects planned for coming years.
But according to the QRC’s 2010-11 Federal Budget submission, while the collective value of major Queensland resource projects either ‘under study, committed or under construction’ is more than $115 billion, a significant $107 billion remains subject to final investment decisions.
“All that proposed new capital expenditure is at the mercy of market conditions and importantly from a government perspective, adverse changes to domestic policy settings,” QRC chief executive Michael Roche said.
Pointing to errors from its recent history, Roche also warned against Queensland failing to fully capitalise on global opportunities that come from the growth potential of its resource sector.
“The resources sector in Queensland has been hamstrung by a number of market and policy-induced capacity constraints in recent times,” he said.
“From 1999-2005, the sector as a whole kept ahead of global demand but fell away sharply from 2004 under the weight of capacity constraints including inefficient transport chains, cumbersome project approval processes and skills shortages.”