Under its $91 billion 2024-25 budget, the Queensland Government will set aside $90 million to boost the state’s resources industry.
The funds include $4 million to investigate the potential for a natural hydrogen industry in Queensland and $70.6 million over a four-year period to monitor and manage abandoned mine sites across the state.
Natural hydrogen extraction is an emerging industry and is considered to be a crucial part of the energy mix as Queensland, and Australia as a whole, move to decarbonise.
Queensland’s Resources Minister Scott Stewart says the government signalled its plan to lead the sector into the industrial revolution with a $315 million investment into Queensland’s critical minerals sector, and this year the budget includes funding a natural hydrogen industry.
“This industry is still in its infancy, and we want to partner with research organisations to see if there are sources of naturally occurring hydrogen and if it’s economically feasible to extract it,” he says.
“Natural hydrogen is another potential source of green energy and could be part of the energy mix as Queensland moves towards a net-zero emissions and renewable energy future.”
The Queensland Government says a further $17.5 million over a four-year period will be spent through the Collaborative Exploration Initiative. The initiative supports explorers to discover minerals and metals needed to meet decarbonisation goals, as committed under the Queensland Resources Industry Development Plan.
As part of the Queensland Energy and Jobs Plan, the government is securing the future of thousands of jobs across the state with a $26 billion investment in renewable energy over the next four years.
The funding will allow publicly owned companies to invest in new wind, solar, storage, and transmission infrastructure, as well as protect thousands of jobs across all sectors of the economy.
Queensland Premier Steven Miles says the transition to renewables is not only about emissions reductions, but is also about creating more jobs in new industries and opening up opportunities in the state.
“Protecting regional jobs and acting on climate change is something I am passionate about, which is why I’ve taken steps to put Queensland’s transition to renewables at the forefront,” he says.
The government says modelling by consulting firm Deloitte forecasts investment in the state will increase by $218 billion, attracting more than 85% of new jobs if Queensland reaches its 75% emissions reduction target by 2035.
In 2024-25, electrical grid operator Powerlink will invest $109.4 million to expedite Queensland’s SuperGrid, for early works on central Queensland transmission works and for the connection of the Borumba Pumped Hydro Energy Storage. A further $712 million will support the delivery of CopperString in 2032.
CopperString involves building 840km of new electricity transmission line from south of Townsville to Mount Isa that will connect the state’s north-west minerals province to the national electricity market for the first time in Australia’s history.
The overall budget of $5 billion will cover the transmission lines, up to six new substation sites, and workforce accommodation and facilities along the corridor.
However, the Association of Mining and Exploration Companies (AMEC) CEO Warren Pearce says he is disappointed that there isn’t greater support for the resources sector in the 2024-25 budget, which could have built on previous commitments aimed at advancing the sector.
“Instead, the very successful Geological Survey of Queensland’s Collaborative Exploration Initiative has not been extended beyond June 2027,” he says.
“Plus, calls for action on fundamental regulatory improvement to reduce green and red tape has not been advanced.”
Further, the Queensland Government says the budget recorded a $564 million surplus from 2023-24, as well as an increased revenue of $10.541 billion in coal royalties.
The government says around $3.6 billion of this revenue is expected to be generated from the new tiers of progressive coal royalties, introduced in 2022, which return a fair share of coal super-profits to Queenslanders.
Royalties are anticipated to decline over the forward estimates as record international coal prices return to medium-term levels.
The Queensland Resources Council (QRC) says the budget confirms the government has underestimated the impact of its decision to introduce the coal tax rates.
CEO Janette Hewson says six months ago, the government estimated coal royalties would reach $9.2 billion this financial year, but that has spiked to $10.5 billion.
“Overall, the resources sector contributed 14% of all state government revenue, which is more than any other industry,” she says.
Hewson says the resources sector wants everyone in Queensland to benefit from the state’s resources.
“But without a fair and balanced royalty system that encourages new investment, our resources will remain in the ground, and no one will benefit, and the biggest damage will be to small businesses and jobs in regional Queensland,” she says.
The Queensland Government notes that the state’s overall economic growth is anticipated to strengthen to 3% in 2023-24 and 2024-25, supported by a growing population and substantial rebounds in exports.
Write to Aaliyah Rogan at Mining.com.au
Images: iStock
