Qld coal royalty increase hits project pipeline
The Queensland government has been urged to dump its controversial coal royalty regime after a new report showed mining investment and jobs would plummet in the Sunshine State over the next five years.
The Australian Resources & Energy Employer Association’s resource and energy workforce report released on Friday predicted 28,000 new jobs would be needed to deliver 103 projects in the sector across the country between 2023 and 2028.
Queensland coal royalties delivered $15 billion into state coffers last financial year. Glenn Hunt
But the report predicted a sharp drop in investment and jobs in Queensland which it blamed on the Palaszczuk government’s royalty regime which came into effect in July last year.
The introduction of three new royalty tiers helped deliver a staggering $15 billion in coal royalties in 2022-23, but it also angered big miners like BHP and Rio Tinto who have vowed not to make new investments in the state.
The AREEA report showed that for the first time Queensland had gone backwards – both in terms of project capital (down 15 per cent) and prospective employment (down 20 per cent) on last year’s numbers.
AREEA chief executive Steve Knott said while the overall number of projects (16) stayed the same in Queensland in 2023, job numbers were down over the next five years, as 10 future projects dropped to six, nearly halving the number of workers required from 4400 to 2600.
“While still a healthy pipeline, clearly the Queensland government’s snap decision to massively increase coal royalties has taken its toll on investor confidence,” Mr Knott said.
“Several large coal projects were cancelled or deferred indefinitely. Hopefully, the Queensland government will reconsider its short-sighted approach.
“This
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