Resources industry partners prioritise reliability

QRC Chief Executive Ian Macfarlane said it was not realistic to expect resources companies to sign up to agreements with commercial partners for any commodity project without reassurance that the E&P provider will deliver the whole project over the long-term.

“Resources projects are multi-billion dollar investments that include multi-million dollar contracts. They are investments that are made over years and decades.

“It’s only fair for resources companies to want to be sure that their commercial partners are in it for the long haul, not on the timetable of anti-resources and anti-jobs activists,” Macfarlane said.

“E&P companies who are seen to be happy to take the resources industry’s money in the good times and then succumb to pressure being applied by illegal behaviour of green activists will be viewed as less reliable.

“Resources companies simply can’t be expected to partner with fair-weather friends or businesses who let activists calls the shots.

“If businesses cave to pressure from anti-coal activists, it’s hard to see how resources companies can have confidence in them to work on any other type of resources project.

“You either back the resources industry, or you don’t.

“Had E&P providers not had the courage to support the gas industry during the illegal actions of activists during the construction and field development of Queensland’s CSG/LNG industry, that industry, and the AUS$70 billion of investment and tens of thousands of jobs in regional Queensland would never have become a reality.

“There are too many jobs on the line. Resources companies will have to consider which company is in the best position to help deliver their projects for the long-term.

“Those projects are not only in the thermal coal industry, they are across a range of commodities including metallurgical coal, gas, zinc and bauxite.

“The Queensland government has reinforced its commitment to the development of the highly prospective North West Minerals Province and the Federal Government is seeking to strengthen our global trading markets including through expanded opportunities in India and through critical minerals.

“Queensland also has enormous potential in a range of minerals that will be increasingly important to global trade.

“New resources projects will operate over many decades, supporting local jobs and local communities.

“The livelihoods of the local employees, local businesses, and all Queenslanders through royalty taxes, depend on delivering these projects.”

Queensland’s resources industry supports more than 262 000 indirect jobs in associated industries. In the last year it made AUS$19.2 billion in payments and supported more than 14 200 businesses.

Read the article online at: https://www.globalminingreview.com/exploration-development/04092019/resources-industry-partners-prioritise-reliability/