Cost pressures, ownership shifts and the urgent need for transparency led discussions at the Bowen Basin Mining Club’s November luncheon, where a frank C-suite panel laid bare the operational realities facing the sector. The message was clear: survival in the current environment demands innovation, collaboration and a fundamental shift in how the industry operates.
The panel featured Jason Economidis of Aura Mining, Andrew Boyd of QMetCo, and Janette Hewson of the Queensland Resources Council. Over an hour of robust discussion, the executives tackled everything from cost inflation and regulatory reform to skills crises and the changing landscape of mine ownership in the Bowen Basin.
Opening on operational pressures, the panel didn’t pull punches about what’s driving costs. Jason Economidis identified people costs as the primary concern, noting that enterprise agreements continue to deliver wage increases without corresponding productivity gains. “You also end up with rosters that need more people,” he said, before pointing to the compounding effect of take-or-pay contracts for water, accommodation, port and rail. “Some of the operations in our industry at the moment would be working to lose the least amount they can as opposed to trying to make the most of it.”
Andrew Boyd reinforced the urgency of cost management, saying the industry needs to strip out 10 to 15% through innovation and efficiency rather than shortcuts. “We need to get our kind of mojo back in the industry on innovation – doing things better, doing things smarter, getting rid of bureaucracy, using technology.”
The royalty burden emerged as a persistent theme. Janette Hewson highlighted that operators no longer have the buffer they once relied on to weather difficult times. “That first year [of the royalties scheme], Queensland Treasury got 318% more than they said they were going to get. That’s a huge amount of money that came out of industry,” she said, noting that some companies are still paying 30 to 40% royalties on certain shipments.
On regulatory reform, there were signs of progress under the Crisafulli government. Hewson revealed that QRC’s mapping of current approval processes spans 13 A3 pages, demonstrating the complexity the industry faces. “I’m really pleased to see that the Resources Cabinet Committee and both Department of Resources and Environment starting to figure out how to take away what’s not necessary,” she said.
However, Andrew Boyd cautioned that streamlined approvals alone won’t revive investment. “Unless you’ve got an economic environment that encourages that investment, it doesn’t matter what approvals you get, people aren’t going to invest.” Jason Economidis agreed, saying the structural cost of doing business must deliver sensible returns. “You end up with a whole lot of investment, which is happening now, where people wait for the business to go under, buy it for cents on the dollar, and then you end up with people with sort of all these scrappy businesses.”
For suppliers, the changing ownership landscape presents both opportunity and challenge. Economidis predicted continued asset churn into 2026, with a shift to private capital and debt-financed operations meaning many new owners lack operational expertise. “Those people who have the money don’t always have the operational skills, or the understanding of Queensland’s legislation and industrial relations landscape,” he said, highlighting the opportunity for suppliers who can provide capabilities new Bowen Basin operators need.
Boyd added that new operators offer suppliers the chance to demonstrate efficiency and challenge entrenched practices. “If there are more efficient ways, if there are better ways, then I’m sure you’re going to have people that are going to be pretty receptive.”
The skills challenge drew passionate responses. While the QRC’s work with the QMEA is having a significant impact in reaching young people especially in the regions to drive enthusiasm around careers in mining, regional liveability compounds the problem. With the 2032 Olympics approaching, people who can earn the same money without relocating simply won’t move to the regions.
On supplier relationships, the panel called for greater collaboration and transparency. Boyd emphasised understanding customer cost drivers and adding genuine value, while Economidis reflected on his experience as a supplier, noting that collaboration often fails due to suspicion. “The suspicion that I was going to make more money actually prevented them from working constructively with me.”
Economidis outlined Aura Mining’s approach to rebuilding trust: complete transparency through open-book commercial models and accountability for delivery. “To actually not be a smoke-and-mirrors provider, but be somebody who can be trusted and who’s transparent.”
Looking to 2026, optimism emerged around changing perceptions of coal and potential price improvement. Andrew Boyd predicted steel market rebalancing would lift met coal prices, while Janette Hewson anticipated a shift in public dialogue about coal’s necessity. “The sensible dialogue is going to have a louder voice,” she said, calling on industry participants to make their voices heard with elected representatives including on the need for royalties reform.
The panel closed with a call to action for suppliers and operators alike: weather the current challenges together, innovate relentlessly, and maintain the industry’s non-negotiable commitment to safety and regional communities.