A multinational mineral producer will keep pursuing a new coal development in Queensland’s Central Highlands region despite extreme public revenue raising.
BHP is not giving up on its new $1 billion Blackwater South Coal Project (about 230km west of Rockhampton) even though the State Government imposed the “world’s highest coal royalty tax rates”.
“State Treasurer Cameron Dick said Queensland’s Co-ordinator General [Toni Power] had confirmed with the miner they are [still] proceeding with regulatory approvals ‘at pace’,” News Limited reported.
If the intelligence proves true, a new coal operation will eventually be built next to BHP Mitsubishi Alliance’s (BMA’s) Blackwater Coal Mine in Stewarton. As much as 10 million tonnes of coal per annum is proposed to be extracted for up to 90 years.
The development could also sustain BMA’s existing mining province, creating up to 750 construction jobs plus a further 1200 operational positions in the process.
BHP recently predicted green steel production will take many years to increase, meaning fossil fuels will still be required for the unforeseeable future.
“We do believe that in due course the world will shift to green steel but sometime yet, in the next few decades. We believe that coal will still be needed for the purposes of steelmaking,” CEO Mike Henry said according to the media outlet.
The speculation came shortly after the mining giant threatened to delay the project due to new tiered royalty rates of up to 40 per cent, once the average coal price per tonne exceeds $300.
A taxpayer-funded advertising campaign claimed the levies would help Queenslanders benefit more from the mining boom.
“As Queenslanders we own the coal that is extracted from our state [and] that is why mining companies pay us royalties when they sell it. Lately the price of coal has risen greatly [and], in times of boom, we want to share the boom,” the campaign video said on YouTube.
“When coal prices and company revenue increases the royalty will also increase [and], when world prices are low, the royalties will reflect this. It is fair [and] it is a return for all Queenslanders to support our jobs, services and lifestyle.”
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