Mining Weekly reported that according to a report commissioned by the Queensland Resources Council (QRC), almost one-third of coal mining companies in Queensland are currently operating at a loss.
Mining Weekly reported that according to a report commissioned by the Queensland Resources Council (QRC), almost one-third of coal mining companies in Queensland are currently operating at a loss. The report, which was put together by Wood Mackenzie, reportedly confirms what industry leaders have been thinking for months.
As quoted in the market news:
“While the cost curves and profitability analyses provide hard data on the state of our sector, the opinions of the industry leaders in Queensland – many of them veterans of 30 or more years – tell the story more starkly[,” said QRC CEO Michael Roche.]
Roche noted that resource sector employment fell by about 21 000 in the past two years, and while the sector still accounted for one in every six jobs, it was vital that government broaden its focus to protect the remaining 60 000 jobs in the Queensland resources sector.
“We need governments – federal, state and local – to play their part in providing the sector some relief. We must ensure that policy and regulation supports existing operations, which last year were responsible for contributing A$64.8-billion to Queensland’s economy, while providing one in every six jobs,” Roche said.
“Just because our sector is experiencing a downturn it is not time to sit on our hands as we must have a plan in place to preserve the maximum number of current resources jobs and be ready to take advantage of the upturn. “We need to ensure that regulation doesn’t strangle potential projects that will help create jobs and increase revenue that will fill the void from the commodities slump.”