QUEENSLAND’s peak resources sector body says a new underground operation at the Ernest Henry copper mine in the state’s North West demonstrates a high level of confidence in the sector by mine owners Glencore.

The $589 million dollar underground project, which transitions the mine from an open-pit operation, was officially opened today by the Minister for Natural Resources and Mines Andrew Cripps.

"This new kilometre-deep hoisting shaft is a significant milestone for the mine and will extend its life to 2026," said QRC Chief Executive Michael Roche.

"I congratulate Glencore and particularly the company’s local team lead by Chief Operating Officer Mike Westerman on this visionary project that will double copper production to 6 million tonnes per annum next year and eventually double annual metal production to 50,000 tonnes of copper and 70,000 ounces of gold in concentrate.

"It’s great news for the 500 employees and contractors and will ensure that Cloncurry remains a vibrant community.

"I also congratulate the Newman government for ensuring the region benefits from the prosperity it generates for Queensland by providing the Cloncurry Shire Council with more than $5 million for the construction of a heavy vehicle bypass and upgrades to the local airport from the Royalties for Regions program."

www.qrc.org.au

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AFTER significant protest from the Victoria Tourism Industry Council (VTIC), the Federal Government has reversed its decision to cut funding for the long-running Survey of Tourist Accommodation statistics program.  

“This data is a vital business resource and without it we would not be able to gauge how accommodation businesses are performing. Abolition would have severely hampered the industry’s ability to learn, grow and realise its potential,” says VTIC Chief Executive Dianne Smith.

“In partnership with the Accommodation Association of Australia and the National Tourism Alliance, we called for the reinstatement of this crucial program and welcome this outcome.”

Ms Smith’s comments come after the Federal Government announced the continuation of the Australian Bureau of Statistics’ (ABS) Survey of Tourist Accommodation program – a reversal of a recent announcement of its abolition.

The announcement was made at the Coalition Friends of Tourism dinner in Canberra last night, attended by Ms Smith.

“The data provided over three decades is essential in informing policy and operational decisions across the tourism industry, as well as for building effective business cases for potential investors, both in the accommodation industry and the tourism sector more broadly,” says Ms Smith.

The Victoria Tourism Industry Council (VTIC) is the peak body for Victoria’s tourism and events industry, providing one united industry voice. Tourism and events are growth industries for Victoria and contribute $19.6 billion to the state economy each year and employ more than 200,000 people.

www.vecci.org.au

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THE AUSTRALIA Institute has outdone itself with an economic analysis of the Queensland resources sector that would embarrass the North Korean government.

‘TAI has produced some howlers in the past but today’s effort takes the cake,’ said Queensland Resources Council Chief Executive Michael Roche.

‘The report details all manner of state government business expenditure but completely ignores the other side of the balance sheet.

‘Almost every capital project undertaken by government-owned businesses for resources sector power supply and distribution, water, rail and port capacity gets a headline.

‘Studiously and fraudulently avoided is acknowledgement that these projects were executed on a fully commercial basis, with resources companies entering into commercial contracts that underwrote the capital expenditure and provided commercial returns to government-owned businesses.

‘Not only were these projects undertaken at no cost or risk to taxpayers but their commercial returns were served up as government-owned business dividends in successive state budgets.’ 

In 2009-10 the then QR National coal freight business reported earnings before interest and tax (EBIT) of $224 million. The associated coal network (track) business reported an EBIT of $277 million, with a dividend to the Queensland Government of $215 million.

A search of the document for the word ‘dividend’ will produce a nil return.

Mr Roche said the TIA report was remarkable for turning out an instant collection of howlers such as:

• A barge landing at Aurukun (there is no mine at Aurukun).
• The capital cost of expanding the Meandu coal mine (supplying Tarong Power Station) is being recovered through electricity charges. The government owns the mine and the power station.
• Rail infrastructure concessions totalling more than $1 billion over 2012-13 and 2013-14 were not for the benefit of resources companies (who pay full commercial rates for track use and freight services) but essentially a budget subsidy for passenger transport and unprofitable regional freight services.

‘Virtually the only accurate account of state government expenditure is that by the Mines Department, which is tiny compared with the royalties returned to the state government each year,’ Mr Roche said.

‘The current State Budget forecasts that royalties of worth some $15 billion will be collected from the Queensland resources sector over the next four years, but that’s only part of the equation.

‘Last financial year, resources sector companies spent almost $38 billion in Queensland on wages, goods and services and communities.

‘That direct spending injection is calculated to have generated total spending of $76 billion – one quarter of the state’s economy.’

Mr Roche said the latest TAI report comes as no surprise, given that the organisation’s executive director is a founding member of the anti-coal and gas movement trying to shut down Queensland’s leading export industries.

‘TAI is a sausage machine for reports that deliver the same answer every time, regardless of the question,’ Mr Roche said.

www.qrc.org.au

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