Australian coal operators are crying foul
down under. A worse than feared hike in
coal royalties recently announced in
Queensland’s state budget means more job
losses, the risk of further mine closures, and
the near certainty that numerous major new
coal projects will not see the light of day,
Queensland Resources Council Chief
Executive Michael Roche said. “The
Newman Government inherited from Labor
the highest coal royalties in Australia but
their own hike could see Queensland grab
the dubious honor of being the highest tax-ing coal jurisdiction in the world,” Roche
said. “The combination of company income
tax and the new royalty rates will mean
Queensland carries an effective taxation rate
of 50% on a typical coking coal operation.”
Queensland’s tiered structure will
charge 12.5% on coal prices between
A$100 - A$150/metric ton (mt) and 15%
on coal priced above A$150/mt. The cur-rent structure charges a 10% royalty on
coal priced above A$100/mt.
Roche fears the new royalty structure
would drive coal industry investment away
from Queensland and into the arms of
competitors.
Roche also dispelled the notion that
coal companies will be able to offset these
new state taxes against federal Mineral
Resource Rent Tax (MRRT) obligations.
“The MRRT is a federal tax on super prof-its, and right now, it’s hard work to find a
coal mine in Queensland making a profit,
let alone a super profit,” Roche said.
As featured in Womp 2012 Vol 10 - www.womp-int.com