A record $37.9 billion was spent by minerals and energy companies in Queensland during the last financial year, with a significant portion spent on providing opportunities for employment and apprenticeships in Brisbane.
Analysis of the 2012-13 direct and indirect expenditure from 40 of the states leading resources companies was released on December 3 by Queensland Resources Council Chief Executive Michael Roche.
The report investigated wages and salaries paid, goods and services purchased, and community contributions. It also revealed an additional $37.7 billion in ‘second round value-add’ economic activity.
“What this confirms is that once more the minerals and energy sectors was responsible directly and indirectly for one in every four dollars in the state’s economy and almost one in every five jobs,” Mr Roche said.
The increase in gas exploration and development on the Darling Downs caused expenditure to jump by almost 81 per cent to reach $2 billion in the area, while goods and services purchases in Brisbane saw spending $16.5 billion – an increase of 13 per cent.
With 43,000 direct employees, not including contractors, the resources sector in Queensland provided an additional 400,000 full time equivalent employment opportunities in 2012-13. Almost half of these jobs were available in the Brisbane region.
“This is another reminder of the investment that every Queenslander has in the future of a diversified and vibrant minerals and energy sector,” Mr Roche said.
Coal industry spending represented just over half of the sector’s cash injection to Queensland, with oil and gas ramping up to a 31 per cent share and metals contributing 14 per cent.
Mr Roche said the increased oil and gas spending was essential in offsetting the cost cutting and investment slowdown in the coal industry.
“The challenges facing the Queensland coal industry are well documented as the transition from investment to production takes hold,” he said.
Marking the end of a decade of intensive investment in Queensland’s resources sector, the industry leading period of production is set to kick off early next year as the first exports of liquefied natural gas (LNG) are scheduled to enter the market from new processing plants on Curtis Island.
“In 2013-14, we expect to see another 12 months of strong investment from oil and gas but it remains to be seen whether this will be sufficient to offset continuing belt-tightening in the coal sector,” Mr Roche continued.