ONGOING confidence in the resources sector is translating into an increase in exploration investment across all major commodities but policy concerns persist, a new report from the Queensland Exploration Council (QEC) has found.

The QEC Scorecard was released at the QEC breakfast attended by the Minister for Natural Resources, Mines and Energy, Anthony Lynham this morning.

“Coal exploration increased for only the second time since 2011-12 up by 25 percent. Copper and gold exploration expenditure lifted 19 percent and petroleum exploration expenditure grew by 10 percent,” QRC chief executive Ian Macfarlane said.

“The results underpin the growing optimism in the exploration industry with 58 percent of explorers planning to increase or significantly increase their exploration expenditure and 92 percent of drilling companies forecasting similar or increased spending over the next 12 months.

“Once again, the scorecard shows that Queensland is in prime position to benefit from our state’s rich mineral prospectivity.

“That investment has significant potential to grow," Mr Macfarlane said. "Queensland will be at the forefront of the development of the expanding critical minerals industry.

“Recently, I joined Federal Resources Minister Matt Canavan on his critical minerals delegation to the United States.  This delegation reaffirmed the potential of the partnership between Australia and the US to invest in the projects that will provide the building blocks for everything in our modern societies from mobile phones, to cars and solar panels, as well as use in defence and other strategic industries.

“QRC will also work with the Queensland Government on the implementation of a $13.8 million five-year package to discover and develop critical minerals.”

QEC is the exploration arm of the QRC and its chair, Kim Wainwright, said a strong building block out of this year’s report was the close relationship that has been developed with the Department of Natural Resources, Mines and Energy.

“Explorers’ rapport with the Queensland Department reached an all-time high," Mr Wainwright said. "For the first time in the Scorecard’s nine-year history, explorers were positive about departmental assistance.  This is an important relationship, and we hope it continues to grow.

“Our industry will continue to work constructively with the Government and the Department to improve the exploration permit process. Exploration is the cornerstone of the overall resources industry and if we don’t explore for new resources today we won’t have a resources industry into the future.”

Mr Macfarlane said the Scorecard also sounded a note of caution about access to capital, social licence to operate and policy uncertainty which was sitting at negative 36 points.

“If we are to attract new investment and create new jobs we need a clear and stable policy environment in which it to operate,” Mr Macfarlane said.

“This includes a clear, consistent approval framework and timetable, as well as potential for new exploration and new projects.  Despite our rich prospectivity, Queensland cannot take future investment for granted.

“These will be key issues for Queensland in the election year 2020.”

Both Mr Macfarlane and Ms Wainwright thanked outgoing QEC chair Brad John PSM for his outstanding dedication over the past two years to the QEC and the exploration industry.

www.qrc.org.au

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THE Parliament’s Foreign Affairs, Defence and Trade Committee has launched a new inquiry into activating trade and investment between Australia and Pacific island countries.

Chair of the Committee’s Trade Sub-Committee, Ted O’Brien MP, said parliamentarians wanted to understand how to activate greater trade and investment opportunities with the Pacific region, not only to benefit Australia, but also our Pacific neighbours.

“Pacific Island nations might be in our backyard, but let’s not forget that Australia is also in theirs,” Mr O’Brien said.

“We’re far more than just trading nations, we’re neighbours who can mutually benefit by activating greater trade and investment opportunities, which is why we’re launching this parliamentary inquiry.   

“We want to hear all the stories – the good and the bad – from practitioners in the field. We want to learn from businesses who are successfully exporting into the Pacific as well as from those who have tried and failed.  We also want to hear from businesses who, right now, are weighing up the pros and cons, the risks versus the opportunities, of trading in the Pacific,” he said.

“Free trade is good for those nations which embrace it, and so we want this inquiry to examine the conditions that will help activate even more trade and investment opportunities, with the people of the Pacific and Australia all coming out winners.”

The inquiry follows Australia signing a new development-centred trade agreement, the Pacific Agreement on Closer Economic Relations Plus (PACER Plus), with 13 other members of Pacific Islands Forum.

"We’re keen to explore how PACER Plus will help Pacific island countries become more active partners, and benefit from, the regional trading system," Mr O’Brien said.

Submissions from any person, businesses or organisations with an interest in the issues raised by these terms of reference are welcome. Submissions addressing all or some of the terms of reference should be lodged by February 11, 2020, with overseas submissions due on February 18, 2020.

Further details about the about the inquiry, including terms of reference, details on how to contribute a submission and, when available, details of public hearings and roundtable discussions, can be obtained from the Committee’s website.

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THE Joint Standing Committee on Treaties has tabled a report endorsing three proposed treaty actions.

Committee chair Dave Sharma MP said that each of the treaty actions represented important progress for Australia.

In particular, the report includes a treaty that provides for the establishment of the governing body of the Square Kilometre Array Observatory. The Square Kilometre Array is a global big-science project to build and operate the world’s largest, most advanced radio observatories.

"Australia will be one of two countries to host a Square Kilometre Array telescope and our involvement will reinforce Australia’s commitment to international cooperation in scientific and technological fields," Mr Sharma said.

"The Committee was also excited to hear that the project is expected to generate Nobel Prizes, some of which are expected to be received by Australian scientists."

Also considered in the report is a treaty on the protection of investments agreement with Uruguay, which Mr Sharma said reflected Australia’s commitment to update older style investment treaties.

A treaty on the United Nations Convention on Transparency in Treaty-based Investor-State Arbitration has also been endorsed by the Committee, with Mr Sharma noting that it enhances transparency for investor-state arbitration proceedings, a longstanding matter of public concern.

"Once ratified, the UN Convention will enable existing transparency rules to be applied to arbitrations across a wider pool of investment treaties, including the publication of case related information and for tribunal hearings to be made public," Mr Sharma said.

Further information on the treaties and the final report can be obtained from the Committee’s website.

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THE Financial Services Council (FSC) has today welcomed several initiatives included in ASIC’s revised fees and costs disclosure requirements for PDSs and periodic statements, including the updated Regulatory Guide 97.

FSC CEO Sally Loane said, "We are pleased to see that the updated rules increase comparability and clarity of disclosure, including changes as to how some of the fees and costs categories are grouped together.

“Consistency in reporting of superannuation fees is crucial to ensure consumers can meaningfully compare products and make informed choices about their retirement savings,” Ms Loane said.

“Overall the changes are a positive step forward for Australians, who will be able to more clearly understand what they are being charged for when it comes to financial products. We are however disappointed that our request for a longer timeframe for compliance has not been granted in today’s update.

“The FSC’s submission earlier this year pressed strongly for a longer timeframe for compliance, particularly in the case of PDSs. We submitted that this was necessary to accommodate the extensive system, data gathering and disclosure changes – the shorter timeframe will create added pressure and risk for businesses implementing the new rules,” Ms Loane said.

“The FSC looks forward to engaging with ASIC over the coming months to ensure industry has a disclosure framework that provides transparent, comparable information and promotes consumer trust and confidence in the financial services system.”

The new rules and guidance follow ASIC’s Consultation Paper 308 Review of RG 97 Disclosing fees and costs in PDSs and periodic statements released earlier this year, and Report 581 Review of ASIC Regulatory Guide 97: Disclosing fees and costs in PDSs and periodic statements.

www.fsc.org.au

About the Financial Services Council

The Financial Services Council (FSC) has more than 100 members representing Australia's retail and wholesale funds management businesses, superannuation funds, life insurers, financial advisory networks and licensed trustee companies. The industry is responsible for investing $3 trillion on behalf of more than 15.6 million Australians. The FSC promotes best practice for the financial services industry by setting mandatory Standards for its members and providing Guidance Notes to assist in operational efficiency. The FSC’s mission is to protect and enhance confidence in a strong, sustainable financial services sector that serves Australians with integrity.