Mining tax to stay but Crisafulli promises ‘fairer’ system
The Australian boss of mining giant BHP has warned the ‘sugar-hit’ of Queensland’s coal royalties scheme will deter investment despite the Premier’s insistence the state is ‘open for business’.
The Australian boss of mining giant BHP has warned the “sugar-hit” of Queensland’s coal royalties scheme will deter investment despite Premier David Crisafulli’s insistence the state is “open for business”.
Mr Crisafulli recommitted to his election promise of maintaining the former Labor Government’s controversial super-profits regime after The Australian revealed the newly-elected government had been saddled with resolving a secret stoush with the Indian mining giant, Adani.
“I want people who are looking to invest in Queensland to know that we’re open for business, whether or not that’s mining, tourism, agriculture, high-end medical and educational research,” Mr Crisafulli said. “Queensland is open for business.
“There’s always been changes to the way that industries have been regulated and the way they’ve been taxed and, as a result, people have packed up their lunch box and they’re looking to invest elsewhere.
“All companies will get fairer treatment under us … we will have stability in taxation and regulation.”The premier said on Monday morning he had yet to be formally briefed on the former Labor government’s ongoing stoush with Adani Mining Pty Ltd, now trading as Bravus Mining and Resources, which has seen the company pay full royalties upfront rather than the deferral deal locked in by Annastacia Palaszczuk.
Secret legal action was launched in the Supreme Court by the Queensland government in the weeks leading up to last month’s state election, in an attempt to block Bravus’s attempt to gain access to Cabinet-in-confidence documents, including correspondence involving former Treasurer Cameron Dick.
Bravus Mining and Resources, operates the controversial Carmichael coalmine in central Queensland’s Galilee Basin, originally touted as Australia’s largest coalmine.
On Monday, BHP’s Australia President Geraldine Slattery advocated for greater collaboration between the resources sector and government to ensure the state remains a competitive growth region.
“The state’s royalty regime is the highest in the world – with the maximum rate some 43 per cent higher than the next nearest jurisdiction, which makes it hard to attract the capital needed for future growth,” Ms Slattery said.
“The sugar hit of revenue won’t leave the state better off in the long run if investment is driven elsewhere.
“In this, I am not advocating for policy critique for the sake of it – rather I am suggesting that a partnership approach between business and policymakers will likely create better outcomes for all. But it starts with making our views known in a respectful way, rather than grumbling on the sidelines.”
BHP’s chief executive Mike Henry has previously said Chile and Canada were now more attractive for investment.
The super-profits coal royalty scheme was introduced in 2022 to ensure Queenslanders were “fairly compensated” for the sale of the state’s natural resources, and was immediately met with ire from the mining industry.
The sector’s industry body, Coal Australia, donated more than $1.6m to registered third parties advocating against Labor at the last state election. At the 2017 election, the Palaszczuk Government's support of the Adani-backed mine proposal was met by strong protest.
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