Coal news and updates

NSW to increase coal royalties to provide cost-of-living relief

The NSW government is promising its next budget will include cost-of-living relief for households, with the bottom line to be boosted by a tax hike for coal mining companies.

Treasurer Daniel Mookhey announced from July 1, 2024, the previous government's emergency domestic coal reservation measures, otherwise known as the price caps, will end.

Instead, the government will up the coal royalty rates by 2.6 per cent, taking the top tax rate for coal producers is 10.8 per cent.

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Coal royalties are the amount the government charges mining companies for the right to extract the substance.

Mookhey said he estimated the changes would put $2.7 billion back into the state budget between 2024 and 2025.

"Every dollar raised from these changes will be ploughed back into rebuilding the state's essential services and providing cost-of-living relief to hard-pressed families," he said.

The treasurer promised the increase in coal taxes would not impact energy bills for NSW residents.

"The advice we have received is that this will have nil to negligible impact on power prices," he said.

He also promised that the increased royalties would not impact employment or long-term investment from mining companies.

The Minerals Council of Australia said the additional 30 per cent royalty revenue would "create a significant challenge for the industry".

Mookhey's announcement comes after the state government yesterday revealed it is seeking to extend the life of the state's largest coal-fired power plant to limit the risk that renewable projects won't plug the gap when the station retired.