Australia’s mining sector will keep enjoying a jump in activity despite extreme government revenue raising, an advocate said.
Minerals producers will continue to benefit from the thermal coal boom, even if the State Government imposes the “world’s highest coal royalty tax rates”.
The Mining and Energy Union (MEU) claims international investors will keep pumping money into coal projects, because new tiered royalty rates of up to 40 per cent will not significantly impact on “record” commodity prices. The coal spot price was US$410 (A$598.96) a tonne at the time of publication.
“Coal prices are at staggering highs and no mining company is making investment decisions based on these prices, or on Queensland’s new royalty rates triggered by these prices. In fact, some Japanese players in the Queensland coal industry already had their coal assets on the market before the royalty changes,” MEU president Tony Maher said in a public statement.
“Mining companies will make their investment decisions based on the long term outlook for coal prices and demand … [and] they would like to pocket a bigger share of the current super profits on the way out – but we will back a new hospital for Moranbah over bigger payouts for Japanese shareholders any day.”
The remarks came after the Queensland Resources Council (QRC) warned the government’s plan for taxing its way to prosperity will ultimately fail to raise as much revenue as promised due to weaker growth.
“This is an excessive level of taxation that is unprecedented and completely unsustainable, [because] it will kill the golden goose that has supported Queensland throughout COVID,” QRC CEO Ian Macfarlane previously said.
“By increasing coal royalty rates to the highest levels in the world, the Queensland Government has put a big black mark against our state’s name with investors. This will affect investment in current and future resources projects, because companies are more likely to invest in states and countries which have more reasonable and stable tax regimes.”
Maher welcomed a new taxpayer-funded advertising campaign that promotes the new tiered royalty rates as a “fair” way for every Queenslander to “share the boom”.
“It is absolutely appropriate for Australian governments to make sure the industry delivers for citizens, especially at a time of record high prices.
“Mining communities are calling out for a fair return for their long-term support for the coal industry, and overseas governments [like Japan] and the mining lobby should respect this.”
Related articles
‘Excessive’ tax could ‘kill’ mining boom says advocate
Authorities order resources giant to pause $26B project
Employer sentenced to jail for torturing mine employee
$896M coal expansion will reopen ‘promptly’ says mining boss.
Add Comment