Queensland’s 2026–27 State Budget has underscored the state’s balancing act with its resources, backing critical minerals development and regional infrastructure while relying on coal royalties to deliver billions in revenue.
Budget papers forecast coal royalties will rise from $4.799 billion in 2025–26 to $6.948 billion in 2026–27, lifting total royalties to $9.486 billion. When land rents are included, Queensland’s royalties and land rents are expected to climb from $6.774 billion to $9.692 billion.
The figures highlight the immediate fiscal weight of coal as Queensland looks to broaden its resources base. The budget has committed $146.1 million to critical minerals, including $100 million for the Queensland Critical Minerals Fund and $46.1 million over three years to build value chains and bring major projects online sooner, particularly in the North West Minerals Province and surrounding regions.
In its budget overview, the Queensland Government said the package would “accelerate extraction, processing and export of high-quality critical minerals to the world”, while also “driving investment in new critical minerals projects” as well as reopening former mines to extract critical minerals.
Association of Mining and Exploration Companies (AMEC) chief executive officer Warren Pearce said the budget showed how important the sector remains to the state’s finances.
“We know how important our industry is to the Queensland economy. It continues to make an enormous contribution to the State Budget,” Pearce said.
“But those returns do not happen by accident. They are the result of investment, exploration, development, approvals and infrastructure working together.
“As a result, the industry must be supported by the Government with practical reforms that help projects move from discovery to development, and help create the right settings to attract further investment.”
In the critical minerals setting, this includes direct funding, infrastructure support and a push to re-commercialise legacy mining areas.
AMEC said the $146 million critical minerals package is “aimed at accelerating the extraction, processing and export of high-quality critical minerals to a global market”.
The Budget also includes $12.6 million in new funding, as part of $33.9 million over two years, to support the re-commercialisation of abandoned mines.
“Historic mines and mining areas should not be viewed only as liabilities. With the right policy settings, they can become new economic opportunities while supporting rehabilitation outcomes,” Pearce said.
The North West Minerals Province remains central to that shift, with AMEC pointing to $3.2 billion for CopperString, $300 million over four years for ongoing support of the Mount Isa copper smelter and Townsville refinery, a $200 million North West Energy Fund, and the $600 million Mount Isa Transformation Study.
“CopperString is nation-building infrastructure and remains one of the most important projects for Queensland’s mineral future,” Pearce said.
However, industry groups also used the Budget to argue that fiscal reliance on resources needs to be matched by long-term investment conditions.
The Queensland Resources Council (QRC) welcomed the Budget’s critical minerals funding, fuel security plan, Financial Provisioning Scheme review, Mount Isa smelter support and CopperString commitment.
However, QRC chief executive officer (CEO) Janette Hewson said the Budget did not address the state’s coal royalty settings.
“This Budget backs part of the resources sector but it ignores the single biggest handbrake to Queensland’s economy – Queensland’s coal royalty regime,” Hewson said.
“Higher royalties are not delivering a stronger state; they are reducing investment, hurting regional businesses and workers.”
AMEC raised another long-term question around exploration, and while Pearce welcomed the continuation of Exploration Permits for Minerals rent waiver through to 2028, he said the Collaborative Exploration Initiative had not been extended beyond its final funded round.
“Queensland has extraordinary minerals potential, but potential alone is not enough,” Pearce said.
“Programs like the Collaborative Exploration Initiative help bring forward new discoveries and attract investment.
“This helps build the project pipeline that delivers future jobs and royalties that support State Budgets.”
