Whitehaven Coal forced to clarify disdain for royalties increase amid favourable mentions by pollies

A coal mining company has been forced to clarify it holds no support for Queensland’s controversial royalty increase after it was mentioned in parliament.

A coal mining company has been forced to clarify it holds no support for Queensland’s controversial royalty increase after it was mentioned by the Treasurer and Resources Minister in parliament.

Whitehaven Coal, which runs the new Winchester South mine in the Bowen Basin, issued a statement overnight on Wednesday signalling the words of its chief executive had been taken out of context.

The latest chapter in the ongoing friction between the state government and the mining industry comes as Queensland Resources Council chief executive Ian Macfarlane rejected claims there had been consultation.

Whitehaven Coal officials, who run the new Winchester South coal mine in the Bowen Basin, have said they hold no support for Queensland’s royalty increase after it was mentioned by the Treasurer and Resources Minister in parliament. Picture: Supplied

The state government, in its latest budget, introduced new tiers to Queensland’s coal royalties regime in a bid to benefit from exceptionally high prices on the global market — a move which came as a surprise to the industry and sparked threats of declined investment.

Mining giant BHP this week confirmed it had shelved a $1bn coking coal project, which would create 2000 jobs, and some mines could shut early due to both the royalties increase and the long-term outlook for metallurgical coal shifting as key countries announce new climate policies.

Treasurer Cameron Dick and Resources Minister Scott Stewart on Wednesday told parliament other coal companies had flagged the royalties increase as a non-issue for continued nvestment.

Paul Flynn, Chief Executive Officer of Whitehaven Coal. Picture: John Feder

“Since the new royalty regime was introduced, Whitehaven Coal has confirmed that their new mine at Winchester South is unaffected,” Mr Dick said.

Mr Stewart said “other coal companies” had confirmed the new royalty arrangements would not impact final investment decisions for any of their mines, including “companies like Whitehaven Coal”.

Whitehaven Coal, in a statement, clarified it “does not support changes the Queensland Government has made to increase coal mining royalties”.

The company’s chief executive Paul Flynn, in a July meeting with equity analysts, noted the lack of consultation.

“It’s hard to speak too nicely about that, what’s gone on in Queensland. I think that’s very negative one way or the other (and) the lack of consultation and just the dramatic nature of it; it’s clearly not a royalty, it’s a tax,” he said.

Queensland Resources Council chief executive Ian Macfarlane. Picture: Duncan Evans

Premier Annastacia Palaszczuk, asked on Wednesday if the tit-for-tat debate over royalties could have been avoided if the state government had consulted the mining industry, and said the Treasurer “did consult” with the Queensland Resources Council.

Mr Macfarlane refuted the claim, revealing the body met with the Treasurer only twice, on May 26 and June 8.

“At no stage did (the Treasurer) consult with us what the rates would be or give us any insight what the government was thinking,” he said.

Mr Macfarlane, in the May 26 meeting, was told by Mr Dick there would be a royalties increase, and on June 8 was told that would involve tiers.

Originally published as Whitehaven Coal forced to clarify disdain for royalties increase amid favourable mentions by pollies