Mining giant Glencore has partly blamed the Palaszczuk government’s new controversial royalties scheme for its decision to abandon its plans to build a $2 billion thermal coal mine in Central Queensland.

As Treasurer Cameron Dick announced a $6 billion turnaround in Queensland’s bottom-line courtesy of $5.2 billion in extra royalties in Wednesday’s mid-year budget update, Glencore said it had decided to withdraw the Valeria coal project from the approvals process and will place the project under review.