That’s what the Queensland CEO Michael Roche believes and as a denizen of Brisbane he probably has a lot of experience of the beaches at the nearby Gold Coast.
“Imagine yourself standing in the ocean and you are digging your toes into the sand, trying to keep your head above the water as each wave rolls past,” Roche said. “That’s how most veterans in our sector are feeling of late. It is no secret. Industry is hurting and survival is the name of the game.”
Roche then alludes to a report by Wood Mackenzie that found that one-third of all coal mines in Queensland are running at a loss.
Breaking that down further, more than half of Queensland’s thermal coal mines and one in four of the state’s metallurgical coal mines are not covering their cash costs.
The Premier has indicated that she is ready to dive in. But Hogsback wants to know whether she would be willing to swim out and help drag the state’s coal mining industry back to safety.
The QRC wants the Premier and her Ministers to explore a range of ways in which government can ease the burden of government-imposed or sanctioned costs.
What can be done about some of the rampant increases in local government rates for many mining and gas operations, for instance.
Then there is the ongoing issue of royalties. The state government has resisted pressure by certain groups to increase royalties, but what about the ability of coal mines to pay anything if they are about to go under?
“While a commitment to no increase in royalties in this current parliament is welcome, in reality we need to be having a conversation about the fact that the state government is collecting royalties from resource operations which aren’t even covering their cash costs,” Roche said.
Similarly, government and private sector service providers of rail, port, water and energy services need to be coming to the table to discuss how they could be working with their customers to get through this very difficult part of the cycle.
Government also has to seriously re-think proposals for additional regulation flowing from reviews of long distance commuting (FIFO) arrangements and of the mining industry safety and health legislation.
Quite a lot to talk about as you are gulping for breath and swallowing water with waves crashing over you and an undertow taking you further out to sea.
Hogsback reckons some of Queensland’s coal miners are pretty good at multi-tasking underground so given the situation would basically ask and happily receive any help they could get.
All they want is the Premier to notice that they have been dutifully swimming between the flags and they now need a lifeline.
