Temporary setback for Qld resources sector

Reports today (Mine shutdown a ‘kick in the guts’) about the closure of BMA’s Norwich Park coal mine in Dysart, Central Queensland clearly refute recent claims the mining sector is undergoing an out-of-control expansion. As reported on ABC News (Coal mine closure ‘presents $1b export threat’):

The BMA says the widespread belief in an Australian mining industry boom is misplaced.

BMA asset president Stephen Dumble says the company’s other mines remain profitable.

“Norwich Park, unfortunately for a range of circumstances, was the most exposed to some of those commercial pressures and in that sense is somewhat of an isolated case,” he said.

This comes at a bad time for the new Queensland Government, which will have to reduce its forecast coal royalties, but I expect the closure will have only a temporary, limited impact on the economy, given the large pipeline of resources sector projects that are planned or under construction.

Other recent news reports show the potential for even further growth in the Queensland resources sector:

Miner anticipates change in uranium policy

Far North’s mining industry hits $1 billion

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This entry was posted in Budget, Mining, North Queensland. Bookmark the permalink.

One Response to Temporary setback for Qld resources sector

  1. KS says:

    More than a decade since I worked for BHP in CQ. However, Norwich Park was always differentiated from the rest of the group particularly with different coal quality. It’s no surprise this is now targeted just as it was marginal back in the 90’s Asia crisis.

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