3 weeks ago
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Federal Nationals leader David Littleproud urged Queensland state colleagues to ditch the coal royalties regime after BHP blamed the excise for it cutting 750 jobs as the stoush between miners and the Crisafulli government intensified.
BHP Mitsubishi Alliance (BMA) lashed out at the state government on Wednesday for edging the resources sector toward “crisis point” when it announced the job losses from its Queensland coal operations and it mothballed a mine in Central Queensland.
The world’s biggest miner also said it would consider binning a training facility and employment pathway centre in Mackay because of the government’s “unsustainable coal royalties and market conditions”.
BHP’s Blackwater coal mine in Queensland.
“The simple fact is the Queensland coal industry is approaching a crisis point,” BMA asset president Adam Lancey said.
The announcement triggered a war of words between industry heavyweights and the Liberal National state government over the royalties’ regime, which was introduced by the former state Labor government.
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On Thursday, Littleproud joined a chorus of industry lobby groups to condemn his party’s state branch led by Premier David Crisafulli, who has repeatedly said he will not touch the coal excise.
“There is a need for a review of the royalty tax if we want to have a sustainable mining industry,” the Nationals leader told reporters in Brisbane.
“The Labor government left the Queensland economy in a mess – David Crisafulli is trying to fix it up, but unfortunately, you can’t tax something that may not ever be there the way they’re going.
“We would ask the Queensland government to think seriously about re-engaging with the resource industry here in Queensland, to use some common sense, give them some hope, [and] give some families that work in the mining industry some hope that they’ll have a job.
“The Queensland government can play their role, and I’d encourage them to do it.”
But state government frontbenchers on Wednesday stood firm by the refusal to change the royalties, including Treasurer David Janetzki who instead blamed the job losses on the rising costs of production and lower coal prices.
“While this is a disappointing commercial decision by a multi-national mining giant that just four weeks ago posted a $16 billion profit ... the Crisafulli government remains focused on the workers and Queensland communities affected by BHP’s decision,” he said.
“The Crisafulli government is providing certainty for the coal industry in Queensland with faster decisions, streamlined approvals and a stable royalty regime, exactly as we committed before the election – there will be no changes to Queensland’s royalty regime.”
Another major miner, Anglo American Australia, revealed on Thursday it was cutting nearly 300 jobs from its coal division in Queensland, citing weaker coal prices and rising operational costs for the “comprehensive review of our organisational structure”.
Wider commentary linked this significant round of redundancies to the ongoing spat over the royalties’ regime but Queensland Mines Minister Dale Last insisted this was a “commercial decision by Anglo American which reflects recent challenges that are unique to its operations in Queensland”.
Between 2022-23 and 2023-24, Queensland pocketed $31 billion from coal royalties following the overhaul, but the revenue has steadily declined.
In the Queensland state budget in June, the state had forecast to receive $6.2 billion this financial year before gradually decreasing to $5.3 billion in 2028-29 – a total of $30.2 billion over four years.
Former Labor treasurer Cameron Dick overhauled the three-tiered royalty scheme, with the government pocketing 7 per cent of the sales revenue up to $100 per tonne, then 12.5 per cent of the value between $100 and $150 per tonne and 15 per cent of any revenue generated above $150 per tonne.
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