Queensland’s resources industries will be protected from a potential Australian recession due to their size and diversity, Queensland Resources Council chief executive Michael Roche said.
According to Roche, that while certain companies are delaying expansion, others are already planning for the next upswing.
“Some resource companies have had to make rapid adjustments to stay viable in unprecedented global trading circumstances,” he said.
“However, a number of companies are also proceeding with new investments, because it is also clear that the commodity demand driven by 2.5 billion people in China and India has been slowed, not derailed.”
Recent developments in nickel processing and liquefied natural gas exports in Gladstone, worth tens of billions of dollars, are examples of the strength of the State’s mining sector, Roche said.
“Coupled with these announcements, we’ve seen the prices for gold and silver continue to provide confidence to Queensland producers while new industries such as underground coal gasification and oil shale refining are reporting significant progress on their pilot projects,” he said.
Queensland needs to prepare for the next upturn in the mining boom, Roche said.
“We need to be keenly focused on the new industry infrastructure projects, rail, ports, water and energy that will see Queensland much better placed than it was five years ago to take advantage of the next upswing in global resources demand,” he said.