Minerals Council boss to warn World Mining Congress in Brisbane ‘short-term tax grabs lead to long-term failure’

Australia’s mineral boss has issued a stark warning amid the Queensland government’s royalties tax, saying “short-term tax grabs will lead to long-term failure”.

“Opportunistic, short-term increases in royalties” used as “politically acceptable” budget repair are one of the greatest challenges facing the mining sector, Minerals Council of Australia chief executive Tania Constable will warn in a pointed jab at the Queensland government.

While not naming the government, Ms Constable warned “short-term tax grabs will lead to long-term failure”.

It follows the government’s record $15bn coal royalty haul in its budget this month, after it increased the top royalty rate from 15 per cent to 40 per cent.

Ms Constable will make the comments in a speech to the World Mining Congress in Brisbane on Tuesday.

Minerals Council of Australia chief executive Tania Constable will address the World Mining Congress in Brisbane on Tuesday. Picture: Nigel Hallett

She will say that the expanding role of government, combined with increased spending pressures, were among the great challenges for the industry and warned against countries putting up “unnecessary internal barriers”.

“(It) creates a greater risk of opportunistic, short-term increases in royalties and taxes being seen as politically acceptable budget-repair measures, despite their adverse impact on investment and the long-term risk that brings,” Ms Constable will say.

“Workplace laws and education policy should be focused on boosting productivity through encouraging flexibility and increased access to skills and technology.

“Short-term tax grabs will lead to long-term failure.”

Coal at the Port of Brisbane. Picture: AAP Image/John Gass

The Fraser Institute’s annual survey of mining companies, released last month, showed the perception of Queensland’s policies from the industry dropped seven places to 28th spot in the world in the wake of the coal royalties decision.

But its investment attractiveness still rose from 18th to 13th spot, ahead of NSW, Brazil and Spain, but behind places including Western Australia, South Australia and Botswana.

Queensland Treasurer Cameron Dick has repeatedly stood by the decision on coal royalties, which last year added three new tiers of tax, saying the resources belonged to Queenslanders, who deserved a fair share of the profits.

Queensland Treasurer Cameron Dick. Picture: Brendan Radke

Mr Dick has said the recent budget, which included $550 power-bill rebates for all households, showed “what we’re delivering back them”.

Ms Constable will also stress the need to accelerate the development of new mines, saying it took an average of 16 years from discovery to production.

“Electric vehicles will need six times more minerals than conventional vehicles,” she will say.

“And let’s not forget the minerals intensity of wind generation.

“That’s nine times more minerals per megawatt of generation than a gas-fired power plant.”

Federal Resources Minister Madeleine King on Monday said more mining was needed “faster than ever” to reach net zero.

Originally published as Minerals Council boss to warn World Mining Congress in Brisbane ‘short-term tax grabs lead to long-term failure’