The Queensland Resources Council (QRC) has welcomed the news that stronger than expected metallurgical coal prices have delivered an extra AUS$2.9 billion in royalties to the state budget.
Total royalties contributed by Queensland’s resources sector in the 2021 – 2022 financial year are now expected to hit a record of approximately AUS$6.1 billion.
QRC Chief Executive, Ian Macfarlane, said Treasurer Cameron Dick’s announcement that AUS$2.5 billion of this royalty windfall will be invested in a long-term asset to earn more money for Queensland – with the remaining AUS$400 million to fund essential government services – is a smart move by the state government.
“I congratulate the Treasurer on his prudent decision to invest today’s royalty dividends to help fund Queensland’s future growth and development,” Macfarlane said.
“Queensland coal producers pay the highest royalty rates in the world, so it’s good to see these royalties being managed responsibly to maximise the benefits to Queensland in the long-term.
“Commodity price rises are a win-win for our sector and for every Queenslander – as prices go up, so too does the amount the resources industry automatically pays in royalties to the state government.”
Macfarlane said the QRC is keen to hear more details about the purpose of the new investment fund and will advocate for resources communities to benefit from royalties generated in regional Queensland.
He said the state government can also expect to receive a budget windfall from high petroleum prices for LNG and for thermal coal in recent times.
“Copper, aluminium and gold prices have also been very high this year, so other Queensland resources are also contributing to increasing state royalties,” he said.
Macfarlane also called for tougher penalties to be imposed on illegal, anti-mining protester activity which has been increasingly disrupting coal operations in regional Queensland.
“Protesters are risking their lives, and the lives of our employees and security guards and police, with their irresponsible and dangerous behaviour at mine sites and at rail and port facilities,” he said. “It’s only a matter of time before someone is seriously hurt or killed.
Read the article online at: https://www.worldcoal.com/coal/28122021/coal-industry-delivers-aus29-billion-to-queensland/