Queensland Resources Council report find coal royalty hike pushing non-coal companies out of Qld

Mining companies digging up non-coal resources in Queensland are considering taking their crucial future investment elsewhere, a new report has found.

Mining companies digging up non-coal resources in Queensland are considering taking their crucial future investment elsewhere after the government’s surprise royalty hike hit business confidence like a “scattergun”, a new report has found.

Multiple coal mining companies, including BHP and Anglo American, have flagged a pause or rethink on investment in the state following the controversial coal royalties increase brought in during the state budget.

But a new Queensland Resources Council report, to be released on Wednesday, has revealed companies involved in critical minerals, base metals and gas are also getting cold feet on investing in the state.

QRC chief executive Ian Macfarlane said the report confirmed “the industry’s worst fears about the impact of the government’s higher royalty taxes on future investment plans”.

According to the QRC’S State of the Sector quarterly report, nearly two thirds of mining sector chief executives believe the chances of “expanding or upgrading their existing operations” had fallen due to the tax hike.

The QRC’s survey gleaned responses from a total of 28 chief executives of medium to large resource companies, representing nearly 40 per cent of major resource sector players represented by the peak body.

Mr Macfarlane said the biggest shock from the report was that 31 per cent, or seven, of non-coal resource chief executives had flagged cutting jobs at their operations in the next five years as they look to invest elsewhere.

Queensland Resources Council chief executive Ian Macfarlane

Treasurer Cameron Dick has repeatedly defended the royalty increase — which involves the addition of new tiers to rake in extra revenue during periods of exceptionally high global coal prices.

“I do not begrudge these companies their windfall profits – they are entitled to reap their fair share, just as the people of Queensland are entitled to reap their fair share as well,” Mr Dick previously said.

Mining companies, the QRC, and even the Japanese ambassador to Australia Shingo Yamagami have lamented the government’s lack of consultation prior to announcing the increase.

“Most resources companies don’t just focus on just one commodity, so hitting the coal sector with higher taxes has had a scattergun effect across our industry and forced a rethink of investment plans,” Mr Macfarlane said.

“This is a big hit to industry investment plans for a State Government that’s constantly talking up an expanded new economy minerals sector, and to Australia’s future energy and resources security.

“The last thing people need to deal with is a downturn in the resources sector, which will impact every Queenslander in one way or another.”

The report comes after the QRC last week revealed the government looked set to rake in $1.2bn in coal royalties in two months — significantly quicker than the four years it was forecast to take.

Deputy Premier Steven Miles, at the time, said the figures if accurate strengthened the case for increased royalties even more.