PERTH (miningweekly.com) – New data from the Queensland Resources Council (QRC) has shown that mining and energy companies spent A$26.8-billion in purchases with local companies during 2021/22.

Some 77% of all purchases by QRC members were made in-state, amounting to more than three of every four dollars spent on purchases.

The figure was slightly down from last year’s record result of 82%, representing a 3% drop in value.

Overall, QRC member companies spent A$34.9-billion on goods and services over the 12-month period, with A$7.6-billion, or 22%, spent with interstate or New Zealand vendors and A$0.5-billion, or 1.5%, on overseas purchases.

QRC CEO Ian Macfarlane said resources companies made a concerted effort to spend locally to support local businesses and regional economies and demonstrate their commitment to Queensland.

“There’s no better way to build a strong social licence to operate with the Queensland community than for resources companies to provide opportunities for local businesses to be part of our industry’s extensive supply chain,” Macfarlane said.

“Local suppliers are absolutely critical to the long-term success of the resources sector because they understand our needs and can collaborate with companies on improvements, often at lower cost than other suppliers.

“Using local suppliers reduces transport costs, minimises greenhouse gas emissions and offers better supply chain resilience, which we’ve seen the value of during periods of global disruption due to the pandemic.

“Buying locally also benefits regional economies and communities by creating new business opportunities, employment and sustainable growth.”

Mining and energy companies spent A$93.8-million with 108 Indigenous businesses in Queensland in 2021/22, representing a 13% increase in expenditure on the previous year.

Macfarlane said the outlook for expenditure by the sector was strong, with nearly a quarter, or 22%, of CEOs saying they expect to increase their spending with local suppliers over the next 12 months, and only 6% of CEOs expecting it to decrease.

“This is a clear sign local suppliers who rose to the challenge during Covid are using their increased capabilities to push for new opportunities to provide goods and services to Queensland’s mining and energy sector,” he said.

“This is a fantastic outcome for resources companies and for Queensland suppliers.”