Burdekin MP Dale Last commits to ‘consultation’ over coal royalties

The contentious coal royalties issue industry leaders say threaten Queensland’s resources sector is dividing politics and now the LNP has indicated it might walk back its support. But there’s a catch.

The LNP opposition will “consult” with big mining companies on how much they should pay into state coffers, marking out a clear new battleline with Labor ahead of the 2024 election.

Burdekin MP Dale Last made the pledge at the Queensland Mining and Engineering Exhibition in Mackay on July 20, but stopped short of saying whether an LNP government would roll back or eliminate the new coal royalties Treasurer Cameron Dick introduced in June.

“We will consult with industry,” he said.

“We have given a commitment that we will sit down with the Queensland Resources Council, we will sit down with these mining companies and we will genuinely consult with them before we make any decision on coal royalty hikes and changes.”

Burdekin MP Dale Last attends the 2022 QME exhibition in Mackay on July 20. Mr Last said the opposition would 'consult' with industry on coal royalties if elected. Picture: Duncan Evans

Mr Last did not specify how the LNP would alter the new royalty regime, but said the “size” of the hikes had had a “massive impact” within the sector.

The new regime adds three tiers to the existing tiered structure, with companies now paying 20 per cent on the dollar when coal prices exceed $175 per tonne, 30 per cent on the dollar when prices climb beyond $225 per tonne and 40 per cent when they exceed $300.

There is a growing swell of discontent across Queensland mining, with big-name producers such as BHP and Anglo American calling the royalties a threat to jobs in Central Queensland.

The policy has even triggered a note of alarm from Japanese Ambassador to Australia Shingo Yamagami, who has warned the royalties could threaten Queensland’s reputation as a safe and predictable investment destination.

Mr Dick has defended the hikes and said they would help to pay for better health infrastructure across the regions.