Not one dollar from $100m mine fund spent

Coalmining towns are yet to see a single dollar from a $100m regional infrastructure fund announced by former treasurer Jackie Trad almost three years ago.

Former Queensland treasurer Jackie Trad. Picture Peter Wallis

Coalmining towns are yet to see a single dollar from a $100m regional infrastructure fund announced by former treasurer Jackie Trad almost three years ago.

In early 2019, the Palaszczuk government promised to lock in the royalty rate it charges coalmining companies for three years in exchange for $70m to build infrastructure in towns where they operate.

The group of 27 mining companies, including BHP and Peabody, signed on to the deal, which allowed them to contribute a fraction of the cash they would have been paid under a royalty hike.

A board was appointed in July, chaired by former Townsville mayor and ALP candidate Tony Mooney, but no infrastructure projects have been announced.

Mining giant Glencore, Kestrel Coal Resources and South32 all have representatives on the board, which has met “several times” along with the manager of Hay Point Coal Terminal, south of Mackay.

A spokeswoman from the state development department said: “Announcements about successful projects funded under round one are expected to be made shortly”.

As the deadline looms for the three-year freeze, which expires at the end of this financial year, Treasurer Cameron Dick is yet to decide whether he will hike royalties in the next budget.

An ongoing diplomatic spat with China and the global economic downturn threatened to cut $1.4bn in coal royalty revenue this year.

Budget papers released in July projected coal royalties would slump to $2.05bn this financial year, compared with the first year of the pandemic (2019-20) when mining companies contributed $3.52bn to the state’s bottom line.

Recent soaring prices will likely offset the damage. Mr Dick will provide updated economic projections at a mid-year fiscal review in December.

The state government is expected to release its resources industry development plan this week, which will outline how Queensland plans to transition from coal and gas to renewables.

It comes as operations were suspended at an open-cut coalmine in central Queensland following the death of a worker at the weekend. Police were called about the death at Curragh Mine, believed to be related to a crush injury, about 2.15am on Sunday. A man in his 50s died as a result.

He is understood to have been a long-term employee at the mine, located about 10km north of Blackwater.

It is the second death at Curragh mine in the past two years.

On January 12, 2020, Donald Rabbitt, 33, was crushed to death under heavy machinery while working on a float.

Independent Work Health and Safety Prosecutor Aaron Guilfoyle has commenced prosecutions over Rabbitt’s death.

Queensland police forensic crash and scene of crime officers attended the latest death and are preparing reports for the Mines Inspectorate and Workplace Health and Safely.

A spokeswoman for the mine’s operator, Coronado Global Resources, said operations had been temporarily suspended to allow authorities to investigate. “A full investigation is being conducted into the accident and Coronado is working with the Queensland police, the Department of Natural Resources, Mines and Energy and other authorities.”

A Resources Safety and Health Queensland spokesman said the worker was fatally injured while on duty. “The incident occurred about 12.43am,” the spokesman said. “RSHQ inspectors are at site commencing inquiries into the nature and cause of the incident. The worker’s family has been notified.”

Coronado’s spokeswoman said the company offered its “deepest sympathies to the family, friends and workmates of the ­employee”.