The Queensland Government needs to urgently reconsider its decision to introduce the world’s highest coal royalty tax after Australia’s biggest mining company BHP said it was a contributing factor in its decision to sell off two major Central Queensland mines.
Queensland Resources Council (QRC) Chief Executive Ian Macfarlane said the company again warned the Government’s royalty increase makes Queensland uncompetitive in attracting investors.
“It is very concerning to see BHP point to the royalty tax increase as a contributing factor in its decision to divest its interests in the Blackwater and Daunia mines in Central Queensland, as part of the joint BMA venture,” Mr Macfarlane said.
“While it’s hoped a new buyer will be found, the decision to sell the mines will create uncertainty for the employees at these two mines, their families, local businesses, and the local communities as the divestment review takes place over the next 18 months.
“BHP indicated the two mines would struggle to compete for capital under its current global investment plans, which is why the Queensland Government should be doing whatever it can to attract investors, not scare them off with the world’s highest royalty tax rate,” Mr Macfarlane said.
Releasing its six-monthly review, BHP said the Queensland Government’s decision to raise coal royalties to the highest rates in the world meant the fiscal environment was no longer competitive or predictable enough for BMA to make significant new investments in Queensland.
“This again confirms that the State Government’s new royalty rates, introduced suddenly and without industry consultation, has made Queensland uncompetitive,” Mr Macfarlane said.
“BHP’s concerns will be noted by other major investors here in Australia and around the world, which adds to the serious threat the royalty tax increase poses to future investment and jobs in Queensland.
“Queensland’s resources sector is the state’s biggest industry, contributing $94.6 billion to the state’s economy and supporting the jobs of around 450 thousand Queenslanders.
“The State Government needs to urgently reconsider its royalty tax increase before other companies join BHP in divesting their Queensland assets, threatening thousands of future jobs and jeopardising the state’s economic prosperity,” Mr Macfarlane said.
