The Queensland Resources Council (QRC) warns Treasurer Cameron Dick’s threat to revoke coal mining leases is expected to further undermine investor confidence in Queensland’s resources sector.
The QRC has raised concerns about the Queensland Government‘s recent decision to impose the world’s highest royalty taxes on coal producers, making the State uncompetitive for future resource investment.
According to QRC Chief Executive Ian Macfarlane, the massive increase in state royalty taxes was implemented without consultation with industry or careful consideration of the long-term impact on future Queensland jobs and investment.
“We shouldn’t take for granted that Queensland will always have a strong resources sector to rely on if policies are introduced which make us less competitive and less attractive to investors,” Macfarlane said.
“All Queenslanders will lose out if resources companies move their focus to mining projects in other states and countries because of growing uncertainty about the Queensland Government’s attitude towards the mining sector,” he warned.
He stated that resources companies take a long-term view on where to invest in new projects due to the large amount of capital necessary and the length of time involved.
“Any sudden and extreme change in government policy, like we saw in Queensland last year, acts as a major deterrent to future investments,” he continued.
According to him, other companies are evaluating their investment and employment plans due to the new royalty regime.
“Once that tide of investment starts to move away from Queensland, it will be very, very difficult to turn it back. This will cost thousands of future jobs and business opportunities and threatens Queensland’s economic security,” Macfarlane explained.
Macfarlane said Queensland’s resources sector is the driving force behind the State’s economy, contributing $94.6 billion in 2021-22 and sustaining over 450,000 jobs.
“This economic benefit is the result of decades of investment from companies who have been long-term members and supporters of regional communities across the state,” he stated.
“It’s time the State Government took this situation seriously because the future of every Queenslander, particularly in regional communities, will look very different without the resources sector underpinning the economy,” he added.
