BHP has announced it will pause any significant new mining investment in Queensland, following the Queensland Government’s decision to lift coal royalty tax rates.
In a quarterly operations review released to the ASX, BHP said, “The Queensland Government’s decision to raise coal royalties to the highest maximum rate in the world makes Queensland uncompetitive and puts investment and jobs at risk.
“We see strong long-term demand from global steelmakers for Queensland’s high-quality metallurgical coal, however in the absence of government policy that is both competitive and predictable, we are unable to make significant new investments in Queensland.
“This increase to royalties will impact the local businesses, suppliers and communities in Central Queensland where we operate.”
The Queensland Resources Council (QRC) said this is a massive blow to Queensland. QRC Chief Executive, Ian Macfarlane, called on the Queensland Government to urgently review its decision to suddenly increase coal royalty rates mid-last year.
“We know other mining companies are also reviewing their investment exposure in Queensland.”
Mr Macfarlane said resources companies pull their weight economically and socially in Queensland, and have done for decades.
“Our mining and energy sector is the number one contributor to the state economy, number one regional employer and number one export industry,” Mr Macfarlane said.
“Last financial year, our industry contributed a record $94.6 billion to the state economy, which included a record $9 billion in royalties collected under the previous royalty tax regime.
“Unfortunately, this could all be about to change. Queensland’s coal royalty taxes are now completely out of step with the rest of the world, and even within Australia.
“Some of the world’s biggest mining companies, and this includes BHP, Glencore and Peabody, have now backed off or are rethinking their investment in new projects, as they reassess the stability of our local investment climate and the State Government’s attitude towards the resources sector.”
