Photo by: Bloomberg
PERTH (miningweekly.com) – The resources sector has continued to support Queensland’s export growth, with the resources sector contributing some 78% of the state’s goods export.
The value of Queensland exports increased by A$8.3-billion to $70.1-billion over the year to March, with coal exports contributing the largest increase.
The Queensland Resources Council (QRC) has pointed out that, of the A$70-billion reported in exports, the resources sector contributed more than A$55-billion.
“The fact is our exports are at record levels. That’s good news for the government’s budget and its capacity to reinvest in services and infrastructure. Its very good news for Queensland jobs and household budgets,” said QRC CEO Ian Macfarlane.
“Resources sector exports from Queensland are now the equivalent of A$1-billion every week.”
The trade data shows coal exports increased by 12.4%, or A$3.3-billion, to A$30.1-billion over the last 12 months, while minerals increased by 9.9%, or A$654-million, to A$7.2-billion over the same period.
“Liquefied natural gas (LNG) continues to be a growing contributor to our exports performance. Combined the Queensland Curtis LNG, Australia Pacific LNG and Gladstone LNG projects, working off Curtis Island, have sent more than 750 shipments overseas from the Port of Gladstone,” Macfarlane said.
He added that stable policy and commodity prices were essential to the resources sector’s strong export performance.
“However, the major threat to our export performance is a homegrown one. Aurizon’s new maintenance regime will cut the movement of an estimated 20-million tonnes per annum. This is the equivalent of A$4-billion in lost export sales.
“For the government, and more importantly for the people of Queensland, it is a A$500-million loss in royalties; in money the government can reinvest in services and infrastructure for the people of Queensland,” he said.
“QRC repeats its call on Aurizon to resume normal maintenance practices and await the outcomes of both the Supreme Court action, which Aurizon initiated, and the Queensland Competition Authority (QCA) assessment.”
Aurizon in March announced a new maintenance plan for its Central Queensland Coal Network in response to the QCA’s draft decision on the company’s access undertaking.
The draft proposed that Aurizon's overall maximum allowable revenue for the next four years from the use of the Central Queensland Coal Network should be A$3.89-billion, including a weighted average cost of capital of 5.41%. The QCA also stated that Aurizon should spend less on maintenance than the previous regulatory period for a rail network that has A$1-billion more assets to maintain and which was forecast by the QCA to transport 15% more coal over the four-year regulatory period.
The revenue allowance is less than what Aurizon believed it should be allowed.