Resources deserve thanks not attacks, writes Dan Petrie
The much-heralded budget surplus was delivered by Australia’s iron ore and coal mining companies who suffer ongoing demonisation that is counter-productive to Australia’s prosperity, writes Dan Petrie.
Opinion
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Another budget passes and the same gaggle of advocacy groups, minor parties who will never govern this country, coupled with every expert from the accounting big four have all offered their hot take on how the government should spend the “hard-earned surplus.”
That much-heralded budget surplus was delivered by Australia’s iron ore and coal mining companies who adhere to a world class regulatory framework around taxation, environmental impact, restoration of site and job creation in regional Australia.
And the thanks this sector gets? Well, nothing.
Resources companies in Australia are now called upon to prop up budgets through the imposition of stealth taxes through the urging of advocacy groups for mining companies to pay their fair share.
The Queensland Resources Council continues a principled fight based on the key ingredients of good commercial relationships; consistent terms of engagement and stability in regulation to make sound investment decisions.
Treasury officials highlighting the benefits of a windfall tax are not particularly surprising but overreach on how much and a coalition of climate advocacy groups provide narratives that lack detail at best and are manifestly dishonest at worst.
In debating parlance this is technique called Gish Gallop where the debater in question provides a series of assertions that conflates generations and various arguments that are spurious at best to counter a point regarded as contentious.
The Climate Council CEO Amanda McKenzie provided a furious response to the approval to the rather unremarkable approval of the Isaac River coal mine by Bowen Coking Coal.
In an op-ed published earlier this week Ms McKenzie laid bare an opposing view that should serve as a reminder that those opining a fashionable viewpoint still need to provide a factual base.
“How can this possibly be consistent with the government’s commitment to Australia tackling climate change and becoming a clean energy superpower? This mine will fuel global warming, leading to more extreme heat, fires and damage to iconic Queensland treasures like the Great Barrier Reef.”
The rigorous approval process for such operations takes years and has been vetted by the stringent Queensland and federal government environmental approvals processes.
Bowen Coking Coal Chairman, Nick Jorss told News Corp that the Isaac River Coking Coal project is located in the Bowen Basin between neighbouring projects including BHP Mitsubishi’s Daunia Mine and Peabody’s Moorvale South.
“Our high quality export coal will be part of the global energy mix for decades to come and steel making coal such as that we will produce at Isaac River is the only economic option for new steel production.
“Those seeking a rapid energy transition without Queensland coal need to work out how we are going to build our renewables without steel.
“We should be proud of our coal industry that creates half of Queensland’s export revenue from less than 0.1% of our land area.
“We are delighted with the work of everyone involved in the Isaac River project and we look forward to adding more regional Queensland jobs to the 700 we’ve already created in the last twelve months.
“As the Bowen Basin’s newest independent coal producer, we’re here to meet the growing demand for energy and steelmaking coal, grow local employment and support our regional communities.”
According to Ernst and Young in its paper, Royalty and Company Tax Payments which was commissioned by the Mineral Council of Australia, tax receipts from resources hit $43 billion for the financial year 2020-21.
The ATO tax tables regularly has Australia’s resources companies as some of the largest paying entities.
At a state level in Queensland mining royalties provided $9 billion in the previous financial year in royalties alone.
There is no question that resources companies should pay tax for the minerals that are ultimately owned by the Australian people.
It is the ongoing demonisation of the industry that is counter-productive to Australia’s ongoing prosperity.
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