PERTH (miningweekly.com) – The Queensland Resources Council (QRC) on Thursday tabled a local content code of practice that would see the state’s resources industry strengthen its ties with local suppliers.

QRC CEO Michael Roche said that it was in the state's and nation’s long-term interest to support flexible and outcomes-based measures to "join the dots" between the resources sector and local suppliers.

“The minerals and energy sector is recognised as underpinning the Queensland economy by providing more than 70 000 direct jobs, and through A$28-billion in local purchases, more than 400 000 indirect jobs.

“However, we’re not resting on our laurels. This code is the right vehicle to pursue the twin goals of facilitating a high level of Queensland content in Queensland resource projects, while maintaining and enhancing the sector’s competitiveness in increasingly tough global markets,” Roche said.

He added that the code presented enhanced opportunities for local industry participation in major projects, allowing resource companies to tailor their approach, based on their individual circumstances.

“It replaces and improves upon the 'tick-a-box' regulatory approach embraced by both the previous state government and current federal government, using a system built on giving local businesses a 'full, fair and reasonable' opportunity to be a supplier to resource projects in Queensland.”

Roche said the code adopted a strong “shared responsibility” framework, with the QRC, government, minerals and energy producers and local suppliers working together to deliver on the principle of ‘full, fair and reasonable’ opportunity.

A new code of practice will see more major resources projects engage local industry suppliers, Deputy Premier and Minister for State Development, Infrastructure and Planning Jeff Seeney said on Thursday.

He noted that the code would be owned, led and managed by industry and focused on ‘full, fair and reasonable’ access for local industry in all aspects of their projects.

“The benefits to Queensland’s economy of resources and energy investments are potentially huge – the pipeline of projects for environmental approval alone is worth a forecast A$71-billion, plus A$56-billion in liquefied natural gas investment already approved. But the maximum benefit depends on Queensland companies and its workforce getting access to major project opportunities.”

The Minister noted that resources projects needed practical strategies to engage local industry if they were going to secure enduring community support, deliver projects effectively and maximise benefits for Queenslanders.

The code would ask proponents to adopt practical local-content strategies to make sure there was early engagement with Queensland industry, inclusive procurement practices and that it provided for guidance and support for proponents to deliver effective strategies.

It established an implementation framework, and a group of industry stakeholders, including suppliers to monitor and refine delivery. Importantly, the code also provided a means to assess progress and report outcomes publicly, Seeney said.

He added that the project proponents would benefit directly from taking ownership of local-content principles.

“Wherever local companies rise to the challenge, there’s an opportunity for long-term local supply solutions to their needs,” he said.

He noted that the state government would do its part in promoting the adoption of the code, in supplier education and in helping to position local industry to tender successfully.