The Queensland Resources Council (QRC) is warning Central Queensland’s future reputation as a powerhouse of the state’s resources sector is under threat from the Government’s sudden decision to impose the world’s highest coal royalty tax.
Speaking to a gathering of industry representatives at a Bowen Basin Mining Club event in Rockhampton, QRC Chief Executive Ian Macfarlane said uncertainty created by Queensland Government policy is driving off investors in new projects.
“The resources sector proudly supports the jobs of around 60 thousand people in the Fitzroy region, accounting for half of all local employment,” Mr Macfarlane said.
“As well as generating $11 billion a year for the regional economy, resources companies spend $3.5 billion a year supporting local businesses, charities and supporting clubs.
“There is a lot at stake for the Fitzroy region as major investors look to other states and countries for new projects because of the Queensland Government’s misguided policy on coal royalty taxes,” Mr Macfarlane said.
“The benefits the resources sector is bringing to the region now are the result of investment commitments made many years, or even decades, ago.
“The impact of the Government’s decision to raise the coal royalty tax rate to five times that of New South Wales won’t be fully felt for another five to ten years when jobs and investment disappear.
“It’s why the QRC is urgently calling on the State Government reconsider its royalty tax decision now and consult with the industry for the good of all Queenslanders,” he said.
Mr Macfarlane said the uncertainty now created about mining investment in the Fitzroy region will be repeated right across regional Queensland towns and cities that rely on a strong and growing resources sector for their economic prosperity.
“We recently heard Australia’s biggest mining company BHP confirm it won’t be investing any “future growth dollars” in Queensland, which should be of major concern to the State Government.
“Uncertainty created by Government policy was also identified by resources company CEOs as their number one concern in Queensland in the QRC’s quarterly State of the Sector report released last week,” Mr Macfarlane said.
“The Queensland Government’s sudden policy changes are overshadowing the many opportunities for our sector from the transition to a decarbonised future.
“Not only will the transition lead to increased demand for our resources from metallurgical coal to critical minerals, but the report confirms resources companies are also taking significant steps to reduce their emissions at operations throughout regional Queensland.
“The Queensland Government has jeopardised the long-term future of regional communities like those throughout the Fitzroy region. For the sake of future jobs and local economic opportunities, the Government must reconsider its coal royalty tax decision.”
