Impact of increasing Queensland coal royalty rate on the Queensland economy
On behalf Queensland Resource Council (QRC), Synergies Economic Consulting has prepared a report entitled 'Impact of increasing Queensland coal royalty rate on the Queensland economy'.
The report details the negative consequences of raising the coal royalty rate and why it would decrease mining investment and projects in the state of Queensland, Australia.
Its conclusions are in line with the reactions of miners who have coal operations in the affected state.
BHP has stated that they would factor in any increase in coal royalties into an on-going review of its coking coal operations.
"Queensland already had one of the world's highest comparable coal royalty regimes," BHP said in a media release. "We made it clear to the Queensland government that in the current environment any additional taxation impost will directly impact the profitability of our current operations and will affect business decisions on capital growth allocations in the state."
Rio Tinto, a major employer in the state with over 2,400 employees in its Queensland coal operations, said it was "shocked" and "disappointed" by the royalty hike.
The "decision to increase royalties in this way flies in the face of the efforts being made by mining companies to improve the competitiveness of their operations by reducing costs", said Rio.
The royalty plan from Queensland's LNP Government predicts it will raise AUD 1.6 billion over four years.
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