Australia’s largest coal producer has criticised the Queensland government over its “short-sighted” resource tax policies and lack of industry consultation.
BHP Mitsubishi Alliance (BMA) Asset President Adam Lancey said the coal mining industry in Queensland was at risk due to the government acting “unpredictably and unreasonably”, driving future investors away.
“The risks of sudden policy and fiscal changes being made without meaningful consultation with the industry … have made it harder for Queensland to be competitive,” he will tell Queensland’s Resources Media Club on Tuesday.
Queensland has significant progressive coal royalties and some in the resources sector describe them as the highest taxes in the world, which fluctuate during periods of high prices.
The state government recently legislated that the coal royalty rates cannot be changed without parliamentary consideration.
In 2022-23, the coal royalties delivered a $15 billion return to Queensland’s coffers while in 2023-24 it was $9 billion.
Mr Lancey criticised the government’s lack of meaningful consultation to strike the right balance on the rates.
“When the NSW government proposed their own changes to coal royalty rates, they took the time to engage with industry and sought to understand the impact these changes would have,” he said.
More than $25 billion was paid in coal royalties in Queensland during the past two years, he said.
“After the changes the government introduced – without discussion or consultation – an additional $9.4 billion has been collected from the coal industry.”
BMA was taxed more than 58 per cent in Queensland.
Mr Lancey said recent policy decisions had been “short-sighted” and forced the major coal producer and other investors to look for opportunities elsewhere, including Western Australia and South Australia.
“Constructive dialogue allows us to explore the potential negative impacts of short-sighted policy decisions that might deliver an immediate sugar-hit – to the detriment of investment and to the detriment of future generations of Queenslanders,” he said.
He also criticised the longer approval rates for mining extensions, saying the process needs to be streamlined without reducing standards for new and existing projects to go ahead.
Mr Lancey called on whichever side of politics elected on October 26 to consult coal industry players when introducing relevant policies, particularly regarding taxes.
“We’re asking to come back to the table and create a shared vision on how Queensland can capitalise on the great assets, people and future of the resources sector,” he said.
“Let’s get the policy settings right for investment through industry and government collaboration, let’s see our fair share of royalties back to the regions where it’s come from.”
The Liberal National Party is tracking ahead in the polls to win the election, ending Labor’s three terms in government.
