Coal news and updates

Labor’s new coal royalty ‘safeguard’ draws the ire of QRC

The Queensland Government and the Queensland Resources Council (QRC) are at loggerheads over the newly passed Progressive Coal Royalty Protection (Keep it in the Bank) Bill 2024.

While the government argues that the change protects Queenslanders’ interests into the future, the QRC claims it effectively tells the world the state is closed for business. 

The Bill, which passed through the state parliament yesterday (12 September), will provide a “safeguard” from Liberal National Party (LNP) leader David Crisafulli’s proposed tax cuts for multinational companies as it ensures the legislation must be amended in the Queensland Parliament before royalty tiers can be reduced. 

Deputy Premier and Treasurer Cameron Dick says this ensures Queenslanders don’t miss out on revenue that can help to alleviate cost of living pressures. 

“Queenslanders deserve a fair share from the coal resources that rightfully belong to them, and our progressive coal royalty tiers are delivering just that,” Dick says. 

“The Progressive Coal Royalty Protection Bill 2024 protects Queenslanders’ interest in the coal that belongs to them.”

Queensland first introduced progressive royalty tiers in 2022, and to date, the government says they have brought in an extra $9.4 billion in revenue for the state; revenue it says has allowed it to deliver record cost of living relief for Queenslanders. 

Concurrently, Dick claims that Queensland mining companies have made record profits off the back of the same global inflation that was “hurting locals’ budgets”. 

The government also notes that the royalty tiers ensure mining companies pay lower rates when international coal prices are low. 

However, the Queensland Resources Council (QRC) says this latest legislation has “further damaged Queensland’s competitiveness and risks the state’s economic security.”

CEO Janette Hewson says the state government’s decision to impose the world’s highest coal royalty tax rates was made without consultation and did not consider the impacts. 

“Forcing a future government to reduce the coal royalty tax rate through legislation is unnecessary and sends a clear message to the international market that Queensland is not open for business,” Hewson says. 

“Policy and legislative changes in Queensland like coal royalties make Queensland less competitive for all resources investment and will only force investors to look elsewhere like New South Wales, Western Australia, or countries outside Australia.

“At this election, the QRC is calling on all political parties to work with industry to provide the right long-term policy setting to secure a strong future for the resources sector.”

Hewson notes that in 2013 the Office of Chief Economist report indicated more than 440 million tonnes of coal capacity in the pipeline for Queensland. In 2023, the pipeline was more than halved to 172 million tonnes. 

Queensland’s resources sector was worth nearly $117 billion and supported more than 530,000 jobs in the financial year 2022-23.