Flynn MP Colin Boyce concerned for Central Qld over Labor coal royalty tax increase

The Labor State Government and Colin Boyce Flynn MP share two very different opinions over the controversial decision to halt a new coal mine in Central Qld following stifling coal royalty tax hikes. Read the full story here.

Queensland’s coal industry has been thrown a curve ball following BHP’s decision to halt plans for a $1b coal mine in Blackwater, following the State Government’s contentious decision to increase coal royalties taxes.

It comes as the Queensland Resources Council revealed the government looked set to make $1.2bn in royalties within the first two months of the new taxes.

Federal Member for Flynn, Colin Boyce has spoken out in defence of his electorate saying the Labor State Government needs to stop treating regional Queensland ‘like a cash cow’.

“Rather than targeting the resources industry with more taxes, the Labor State Government should be encouraging further investment,” Mr Boyce said.

“In the 2020-21 financial year, the resources industry in Flynn provided a total economic contribution of $9.4 billion of gross regional product and supported over 42,000 local jobs.

“Nearly 92 per cent of metallurgical coal exports came from Queensland in 2021, which means billions of dollars in royalties and taxes to pay for the services we all rely on.

“We should be thanking our coal miners for the work they do, not threatening to take away their jobs which is now happening under Labor’s introduction of higher taxes on the resources industry.”

The Blackwater mine was expected to be a $1 billion investment, create up to 750 construction jobs and 1200 operation jobs over a 90-year life as it extracted coal for steelmaking, with a construction start date of 2029.

But Queensland Treasurer and Trade and Investment Minister Cameron Dick appears certain BHP’s decision to cease the Blackwater Coal Mine project is not related to the royalties increase and says it rather “must be viewed in the context of BHP’s 20-year process of withdrawing from coal”.

The Blackwater mine was expected to create up to 750 construction jobs and1200 operation jobs over a 90-year life. Picture: Supplied

“Only last year, well before the introduction of new bipartisan progressive coal royalties, BHP put two new mines on hold, at Saraji East and Red Hill. Just a few weeks back, BHP announced an early closure of the Mount Arthur coal mine in New South Wales,” he said.

Mr Dick further said the coal industry companies were entitled to reap their fair share, just as the people of Queensland were entitled to reap their fair share as well.

“Queensland’s coal industry is in good health, with strong profits being made, and I do not begrudge these companies their windfall profits,” Mr Dick said.

The Queensland Resources Council has also slammed the state government over the royalty taxes, labelling them ‘excessive’ and claiming companies had paid as much in state royalties in the first six weeks of the new taxes as Mr Dick said it would cost the industry over the year.

QRC chief executive Ian Macfarlane said the amount of money companies were paying the state in extra taxes was ‘staggering’ and it would hurt regional communities as a result.

“I’m not sure how much more the resources sector can say before someone in the State Government realises the new tax regime is destabilising the Queensland economy and destroying jobs,” he said.

“Just like the beef and grain industries, resources companies rely on using the extra money earned in the good times, to help ride out the lows when prices fall.

“As anyone who lives in a resources region knows, when our sector is doing well, companies are upgrading their machinery and equipment, expanding operations, employing more people, investing in new technologies and contributing more to their local communities.

“This royalty hike is going to hurt a lot more people than the government seems to realise.

“Mine projects are already being put on hold, and there will be more. The government is shutting down a pipeline of investment opportunities in Queensland for the next 20 to 30 years. It just doesn’t make any sense.”