Voluntary resources code to benefit local suppliers

Queensland Resources Council (QRC) and its members required assistance to develop the “Queensland Resources and Energy Sector Code of Practice for Local Content (2013)” [1] and the “Code Implementation Guide” [2]The voluntary code will help resources and energy companies operating in Queensland to refine their local content strategies, strengthen linkages with capable local suppliers and strengthen their social licence to operate.

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About Queensland Resources Council:  QRC is a not-for-profit peak industry association representing the commercial developers of Queensland’s minerals and energy resources. QRC works collaboratively with kindred organisations and stakeholders to achieve positive outcomes for QRC members.

“LSC Solutions played a pivotal role in assisting QRC and its members to develop the ‘Queensland Resources and Energy Sector Code of Practice for Local Content (2013)’ and the ‘Code Implementation Guide’. Due to their extensive experience assisting local industry and resources and energy corporations, LSC Solutions also developed practical local content strategies that would assist the corporations to engage local industry.” David Rynne, Director Economics & Infrastructure, Queensland Resources Council

Project: Local Content Code of Practice

“This code is the right vehicle to pursue the twin goals of facilitating a high level of Queensland content in Queensland resource projects, while maintaining and enhancing the sector’s competitiveness in increasingly tough global markets,”Queensland Resources Council Chief Executive Michael Roche said. [3]

Key requirements: Assist QRC and its members to develop the “Queensland Resources and Energy Sector Code of Practice for Local Content (2013)” and the “Code Implementation Guide”.

The outcome:

  • The Queensland Resources Council (QRC) the QRC in proud association with the Queensland Government has launchedthe “Queensland Resources and Energy Sector Code of Practice for Local Content (2013)” (Code) on 1 March 2013.
  • The Code was tabled in Queensland Parliament on 21 March 2013 by Deputy Premier and Minister for State Development, Infrastructure and Planning Jeff Seeney.
  • The development of the Code gave rise to developing a Code Implementation Guide to assist the resources and energy sector to implement the Code. The Guide illustrates a sample local content practices using simple yet effective Code-compliant actions.

“A new code of practice will see more major resources projects engage local industry suppliers, Deputy Premier and Minister for State Development, Infrastructure and Planning Jeff Seeney announced today.” [4]

“The benefits to Queensland’s economy of resources and energy investments are potentially huge – the pipeline of projects for environmental approval alone is worth a forecast $71 billion, plus $56 billion in LNG investment already approved,” Mr Seeney said. [5]

What we did:

  • Local Content Workshop:Facilitated the Local Content Workshop (on behalf of QRC) attended by QRC, a broad cross-section of members (large and small resources and energy companies) and government agencies, to identify the main components required by the companies in the Code (including principles and governance arrangements). Produced the Local Content Workshop Report.
  • Draft Code:Facilitated the development of the draft Code (on behalf of QRC) in close collaboration with resources and energy companies and QRC. Facilitated the Draft Code Workshop (on behalf of QRC), attended by QRC and a broad cross-section of members (large and small resources and energy companies), to review and amend the Code as required by the companies. Reviewed the final draft Code. QRC consulted widely during the development of the Code with its members; and also gauged the view of supplier groups and senior state and federal government officials and incorporated feedback.
  • Draft Implementation Guide:Facilitated the development of the draft Code Implementation Guide (on behalf of QRC) in close collaboration with large and small resources and energy companies and QRC. The Guide provides practical local content strategies to engage local industry.

“The code presents enhanced opportunities for local industry participation in major projects, allowing resource companies to tailor their approach, based on their individual circumstances.” [6]

“Mr Roche said the code adopts a strong ‘shared responsibility’ framework, with the QRC, government, minerals and energy producers and local suppliers working together to deliver on the principle of ‘full, fair and reasonable’ opportunity.” [7]

An industry-led Code Steering Committee – supported by the QRC Secretariat – will oversee implementation of the Code, in addition to reviewing its effectiveness and suggesting improvements.

The Code will be owned, led and managed by industry.

QRC: Code Webpage

[1] Link to Code: Queensland Resources and Energy Sector Code of Practice for Local Content (2013)

[2] Link to Code Implementation Guideline: Queensland Resources and Energy Sector Code of Practice for Local Content (2013) Implementation Guideline

[3] Source: QRC Media Release https://www.qrc.org.au/01_cms/details.asp?ID=3239

[4] Source: Queensland Government Media Statement http://statements.qld.gov.au/Statement/2013/3/21/new-resources-code-to-benefit-local-businesses

[5] Source: Queensland Government Media Statement http://statements.qld.gov.au/Statement/2013/3/21/new-resources-code-to-benefit-local-businesses

[6] Source: QRC Media Release https://www.qrc.org.au/01_cms/details.asp?ID=3239

[7] Source: QRC Media Release https://www.qrc.org.au/01_cms/details.asp?ID=3239


By: Sharyn Grant - See all Posts by this Author