Addressing exhibitors and visitors at QME 2006, Smith acknowledged the role of the event in bringing together a cross-section of coal industry people and an impressive array of equipment, technologies and innovations.

As Australia's largest coal miner and exporter, Smith said BMA, like most coal companies, is experiencing the successes and challenges stemming from the booming growth environment of the industry.

“What is quite clear for management is that now is the time to protect our competitive position so that we ensure the security of our mines," Smith said.

“While we remain focused on building and growing our business, we are not prepared to compromise on quality of work, project delivery and safety performance. BMA will not contemplate growth at any cost."

He said the main challenge facing the coal industry was managing the growth appropriately, along with the obvious skills and equipment shortages, and lack of accommodation and experienced contractors.

“The worst we can do in the good times is that we get complacent," Smith said.

He said BMA was in the fortunate position of having access to magnificent coal resources and being close to deepwater ports, but the company's main advantage lay in its good planning and execution, strong management, committed workforce and attentive suppliers and service providers.

BMA operates 10 coal mines in the Bowen Basin as well as the Hay Point export terminal. Smith said the employment opportunities, taxes and royalties generated by BMA provided a considerable input into the Queensland economy – a position the company intends to manage appropriately and sustain long term.

“Over the past three years we have spent $2 billion on operating business and another $2 billion on capital to sustain as well as grow the business," Smith said.

“Here in central Queensland we spend on average $1.2 billion locally each year and about $1.8 billion in Queensland generally."

Smith said the Australia-wide growth in the resources sector had also placed enormous pressure on costs and scheduling.

“Over the past year we have witnessed increases in contract operations of 63 percent, fuel and oil increases of 38 percent, contract truck and shovel stripping up 32 percent and explosives also up 32 percent."

He said there were many other growth constraints facing the industry, such as water shortages, accommodation in central Queensland towns, road safety on Bowen Basin highways and skills shortages – all of which needed to be considered and given priority by BMA and other coal companies.

“We have to accept there are many moving parts, so there will be fluctuations in the long-term directional trend. But the trend is positive, and all stakeholders – the coal companies, governments, suppliers, communities and the workforce – will benefit if we manage this opportunity for the long term."