Australia's resources sector at risk of not securing insurance, funding

This is due to banks and insurers trying to appease activist shareholders, QRC said.

The chief executive of Australia’s Queensland Resources Council (QRC) said that small businesses in the resources sector are having a hard time securing finance and insurance, putting jobs and revenue at risk, according to media reports.

In a 25 June hearing, the council revealed a study that showed three-fourths (75%) of small-medium enterprises in the resources sector have found it difficult to secure banking and lending services in the past two years. 

This is due to insurers and banks trying to appease activist shareholders through cutting connections related to the sector, QRC Chief Executive Ian Macfarlane said.

By reducing the ability of these businesses to secure insurance and funding, banks and insurers are in turn threatening the viability of the resources sector to play a role in leading Queensland’s transition to low emissions, he added.