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New User‘Sugar hit’ coal royalties scaring investors away, BHP boss warns
18 Nov 2024
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BHP Australia president
Geraldine Slattery told a Brisbane business leaders’ forum on Monday that
Queensland’s coal royalty scheme was the world’s highest, making investment in the
Sunshine State a difficult decision.
BHP has five metallurgical
coal mines in Queensland – the state that accounts for 56 per cent of the
nation’s coal production.
Royalties have propped up state government coffers since they were reintroduced by the former Labor government in 2022.
In 2022-23, the coal
royalties delivered a $15 billion return to Queensland’s budget while in
2023-24 it was $9 billion. The LNP has also committed to the scheme in its
four-year forward estimates.
However, Slattery warned
the tax scheme would not benefit Queensland in the long term, and would
discourage investors seeking more cost-effective alternatives.
“The sugar hit of revenue
won’t leave the state better off in the long run if investment is driven
elsewhere,” she told the Queensland University of Technology forum.
“In this, I am not advocating for policy critique for the sake of it – rather I am suggesting that a partnership approach between business and policymakers will likely create better outcomes for all.
It
is not the first time BHP has come out swinging against the state’s coal
royalty scheme. The mining giant’s chief executive Mike Henry told the
company’s annual general meeting last month the tax made the state unattractive
for investment.
Henry said it was driving
the company to work overseas in Chile and other Australian states where it was
cheaper, but he hoped future governments would reconsider the scheme.
The Queensland government
has previously confirmed it was committed to progressive coal royalties, which
require parliamentary intervention to be changed, over the next four years.
“We will retain coal
royalties across the forwards as repeatedly promised,” Treasurer David Janetzki
said before the October state election.