A growing chorus of mining companies have voiced deep concerns about extreme fossil fuel levies.
Anglo American, Bravus Mining and Resources, Coronado Global Resources, Whitehaven Coal, Bowen Coking Coal and Vitrinite recently joined BHP in criticising the Queensland Government for imposing the “world’s highest coal royalty tax rates”.
The proponents claim authorities went too far with new tiered royalty rates of up to 40 per cent when the average coal price per tonne exceeds $300.
“Queensland’s coal royalty rates were already amongst the highest in the world. This new tax is inconceivable and it will place a heavy burden on [both] our sector and Queensland mining regions,” Anglo acting Australia CEO Nick Barlow said in a public statement.
“We estimate the new tax will mean that we will now contribute around 60 per cent of our profits to governments when you take into account state and federal taxation.”
Bravus believes the new royalty rates will fail to “share the boom” because it hinders growth.
“This latest Queensland Government cash grab from the resources sector not only threatens the livelihoods of hard-working regional Queenslanders but also the future and prosperity of communities like Townsville, Rockhampton, Clermont, Moranbah, Emerald and Mackay,” a spokesperson said in a public statement.
“New investment in coal projects and the jobs that go with it are more likely to occur in places other than Queensland.”
Coronado claims nobody from the government enquired about its ability to pay for rate hikes.
“Raising royalties without industry consultation … will have [a negative impact] on investment,” it said.
“[The] Buchanan and Logan met coal mines in the United States will not be impacted by this royalty increase … and the imposition of additional royalties on Queensland business puts it at a competitive disadvantage to lower-cost jurisdictions within Australia and overseas.”
Whitehaven struggled to find positive words about the royalties.
“It is hard to speak too nicely about what has gone on in Queensland. I think that is very negative one way or the other [and] the lack of consultation – and just the dramatic nature of it,” managing director and CEO Paul Flynn said.
“It is clearly not a royalty, it is a tax.”
Bowen Coking Coal believes the new rates are only a short-term option to raise public sector revenue.
“This tax grab will permanently bake in Queensland as the regime with the highest royalties in the world, ostensibly to solve a near term government funding issue,” executive chairman Nick Jorss said.
Vitrinite suggested some coal producers might be forced to postpone or cancel projects altogether due to authoritarian-style taxes.
“The lack of consultation, haste of implementation and lack of due process is un-Australian and an affront to our democratic processes and values, particularly when the industry has already been singled out by China for punishment due to poor diplomatic efforts by the government,” founding managing director Nicholas Williams said.
“Both the scale and the introduction of the new coal royalty scheme by the Queensland Government [are] extremely disappointing and crippling to an industry already facing impossibly strong headwinds.”
The Queensland Resources Council (QRC) compared State Treasurer Cameron Dick’s decision-making process to dictatorships in undemocratic countries.
“After months of trying to secure a meeting with the treasurer to discuss royalties, when we finally got in to see him, we were told the increase was happening and that was it,” QRC chief executive Ian Macfarlane said.
“There was no opportunity for negotiation or discussion about the impact on our industry.”
The State Government continues to stand by its levies.
“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,” a taxpayer-funded ad 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.”
Related articles
Demand for coal tipped to skyrocket due to Russia ban
Mining boss phases out coal despite 820 per cent growth
Demand for coal hits a decade high
Employer begins replacing diesel with ‘green energy’.
Add Comment