Coal news and updates

Soaring prices deliver an extra $5.2b in coal royalties for Queensland

Coal royalties are expected to deliver an extra $5.2 billion into the Queensland government’s coffers this financial year alone, according to the state’s midyear budget update, to be released on Wednesday.

In further evidence of why Queensland Premier Annastacia Palaszczuk does not want to introduce a coal price cap as part of a national energy market intervention, the midyear update will reveal coal and LNG royalties are expected to deliver an extra $6.6 billion over the next four years.

Annastacia Palaszczuk has suggested the Commonwealth fund a gas pipeline to export Queensland gas. AAP

The Queensland government is expected to pocket a total of $27.3 billion in royalties by 2025-26, up from the $20.7 billion predicted in the June budget.

Of the $27.3 billion in total royalties over the next four years, $21.5 billion is from coal and $5.8 billion from LNG.

Coal royalties this financial year are expected to double from the $5.5 billion estimated in the June budget to $10.7 billion in the midyear update – an increase of $5.2 billion.

The midyear budget update, to be unveiled by Treasurer Cameron Dick, will also show the state’s new three tiers of coal royalties will deliver almost $3 billion in 2022-23 – more than double the amount predicted in the June budget.

The new royalty regime – which hits producers with a 40 per cent tax for coal worth more than a $300 a tonne – started on July 1, with big mining companies vowing to fight the new tax all the way through to the 2024 state election.

Mr Dick said every dollar of the new coal royalties tiers will be reinvested in regional Queensland.