Queensland premier rules out changes to coal royalty scheme despite pressure from mining industry

The Guardian

3 days ago

Queensland's premier has ruled out changes to the state's coal royalties regime, often dubbed the world's highest, amid pressure from the industry.
David Crisafulli gave his strongest denial yet of any changes at a press conference in Emerald, in central Queensland, ahead of a cabinet meeting on Monday.
'We're not changing that scheme,' Crisafulli said on Monday.
'We've been upfront. I said to you clearly before the election, we aren't touching the royalty regime.'
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Introduced in 2022 amid high coal prices, the Labor policy raised more than $10bn for the state budget in a single year. Royalties revenue has since declined alongside coal prices.
Under the scheme, miners pay a 20% royalty for prices above $175 a tonne, 30% for prices above $225 a tonne, and 40% for prices above $300 a tonne. Royalty rates in other jurisdictions are typically in the single digits; in NSW, coal producers can be charged as little as 8.8% depending on the type of mine.
As opposition leader, Crisafulli ruled out any changes to the royalties scheme during the period covered by the forward estimates, raising the possibility of changes after the 2028 election.
The CEO of the Queensland Resources Council, Janette Hewson, said it was 'disappointing' that the industry's concerns 'are not being properly considered'.
The state's resources sector has consistently opposed the policy, arguing that it would deter investment and could lead to mine closures. It reportedly spent $40m on advertising attacking the previous Labor government.
'Around a quarter of Queensland coal companies are struggling to break even. The world's highest coal royalty tax rates is a bad policy contributing to that,' Hewson said.
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Royalties have been cited the reason for a series of downturns, including by Bowen Coking Coal after it went into administration last month. Coronado Coal also cited the levy as a reason for a reported $73m loss last week.
The Queensland Treasury argues that royalties have little effect on profits.
Coal and gas campaigner for Queensland Conservation, Charlie Cox, said the industry was wrong to blame royalties for its downturn.
'The truth is, they're being undone by their own product. Whether the coal lobby admits it or not, the era of coal is coming to an end,' he said.
'The problem isn't a policy that puts just some of the money back in Queenslanders' pockets, the problem is continuing to recklessly dig, burn, and export a fossil fuel that is exacerbating the cost-of-living crisis and fuelling climate change'.
Crisafulli told media in Emerald that he is 'very bullish about the future of the coal industry in Queensland', because the government would grant it 'certainty'.
The central Queensland town of about 15,000 is among the country's most coal-dependent, with about 16.6% of the local labour market employed in 'coal mining', according to the Australian Bureau of Statistics.
'We believe in the future of the coal industry. We believe in the future of regional Queensland, and with the confidence that we are giving through the certainty of taxation, regulation and approvals, you are going to see a bright future for the industry,' he said.
The government has extended the life of Queensland's coal power plants, and ordered a review of its emissions reduction targets.