The effects of the Queensland Government’s July 2022 decision to raise coal royalty rates in the state are ongoing and far-reaching.
These effects were thrust in the spotlight at QME’s seminar series, with a panel of experts weighing in on the Queensland royalty rates being the highest rates in the world.
Queensland Resources Council’s CEO, Janette Hewson, said that the message from QRC members has been loud and clear: that the issue is still affecting them.
“It’s really difficult to engage with political stakeholders about the fact that you may not see an impact today, you may not tomorrow but where is that pipeline coming – replacement tonnes – to make sure Queensland continues to get the benefits of owning resources here in the state.”
Ms Hewson said that in 2013 when the coal price was high there were 440 million tonnes of potential capacity in pipeline compared to the current pipeline of 170 million tonnes.
“I’m alarmed in the difference in activity in Western Australia compared to Queensland. We should be competing with Western Australia and I am seeing us drop off,” Ms Hewson said.
With an estimated $13 billion in royalties flowing to Queenslanders from the 2024 Budget, Ms Hewson said that it’s important to ensure Queensland gets the benefits for the years to come.
“We’ve got to get competitive rates. We’ve got to get the rates right. It’s about striking that balance.”
The sentiment was echoed by Minerals Council of Australia’s Chief Economist, Dr Ross Lambie, who said, “Right across the country, mining investment is facing challenging conditions.
“Due to the conditions in Australia, there’s reluctance for new investment to take place. Anything that adds to cost or adds to risk is going to defer investments,” Dr Lambie said.
“Investment in this industry is distinctly different from investment in any other industry. The option to sit back and wait is very valuable, and policy uncertainty has a very direct impact.”
Despite this, Dr Lambie said that investment in the mining industry in particular is highly sensitive to policy changes.
“You can’t look at any one policy in isolation. You’ve got to look at it in context of everything else that is happening.”
Featured image: The QME discussing the long-term impacts of coal royalties. Image credit: Prime Creative Media.
