A multinational resources producer went public about the real expense of extreme government revenue raising.
BHP recently predicted it could end up paying 58.3 per cent more, following the Queensland Government’s decision to impose the “world’s highest coal royalty tax rates”.
“Following the announcement of the change to the Queensland royalty regime from 1 July 2022 we will assess the impact on production, jobs and the communities of Central Queensland. At spot metallurgical coal prices [US$393.45 or A$577.91 a tonne] the effective pre-tax royalty rate has increased by approximately 7 percentage points to 19 per cent,” the company said in its operational review for the year ending on 30 June 2022.
The proponent expects this tax hike will further hinder investment, operational growth, job creation and local business spending across the Sunshine State.
“The new tax damages Queensland’s reputation as a stable place to invest, and will make it harder for the state to compete against other global jurisdictions in attracting major new investments that would deliver longer term value to communities and the state economy,” it said.
BHP Mitsubishi Alliance (BMA) recorded a 9 per cent drop in metallurgical coal production to 29 million tonnes (Mt), or 58 Mt on a 100 per cent basis during the period.
“Significant wet weather impacts across most BMA operations and labour constraints, including COVID-19 related absenteeism which impacted stripping and mine productivity, more than offset record production at the Broadmeadow mine,” it said.
“Production for the 2023 financial year is expected to be between 29 and 32 Mt (58 and 64 Mt on a 100 per cent basis). A long wall move at Broadmeadow mine is scheduled for the September 2022 quarter.”
The business now hopes to save time and money through expanding autonomous technology at multiple mine sites.
“Following the automation of Daunia’s truck fleet in November 2021, the automation of Goonyella’s pre-strip truck fleet was completed in March 2022 with the Goonyella coal truck fleet expected to be fully autonomous by the end of the December 2022 quarter,” it said.
The remarks came after a taxpayer-funded advertising campaign promoted new tiered royalty rates of up to 40 per cent once the average coal price per tonne exceeds $300.
“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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