Coal fight heats up as mining giant launches new attack, vows no significant investment in QLD
Mining giant BHP has reiterated there will be no significant new investments in Queensland under the controversial new coal royalties regime
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Mining giant BHP has doubled down on its claims there will be no significant new investments in Queensland under the controversial new coal royalties regime, as it continues to reap benefits from historically high commodity prices.
BHP’s September-quarter figures show metallurgical coal production, used for making steel, had dropped slightly in Queensland due to wet weather.
But comments in the report added fuel to the resource sector‘s ongoing dispute with the State Government.
“The near tripling of top-end royalties by the Queensland Government remains a serious concern and threat to investment and jobs in that state,” the BHP report stated.
“We see strong long-term demand from global steelmakers for Queensland’s high-quality metallurgical coal.
“In the absence of fiscal terms that are both competitive and predictable, we are unable to make significant new investments in Queensland.”
Despite the strong comment, earlier this month BHP Mitsubishi Alliance put in a submission to the Federal Government for the continuation of its Peak Downs mine, 30km southeast of Moranbah in Central Queensland, with an estimated starting date of September 2025.
The application, if approved, would extend the life of the mine for another 93 years.
Queensland Treasurer Cameron Dick has staunchly defended the royalty increase, despite continued criticism from the resources sector and from Japan’s Australia to ambassador.
He has previously pointed to BHP continuing to go through approval processes for projects in Queensland, such as for the Blackwater South mine, but declined to comment on Thursday.
BHP boss Mike Henry, speaking about the Blackwater South mine which is going through the approval process, has previously said that the continuation of approval processes should not be mistaken for a decision to invest.
The company has threatened not to proceed with Blackwater South under the current royalty regime, though construction is not due to commence until 2029.
Coal prices have been reaching record highs of about $400 per tonne, as a range of global factors including Russia’s invasion of Ukraine sees prices skyrocket.
BMA operates seven Bowen Basin mines, including Blackwater, Broadmeadow, Goonyella Riverside, Peak Downs, Saraji, Caval Ridge and Daunia.
The new royalty regime adds three tiers to the existing tiered structure, with companies to now pay 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.
It has also created international controversy, with Japan’s ambassador to Australia making a rare political intervention to condemn the unexpected tax hike and lack of consultation.
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