PERTH (miningweekly.com) – Coal miner Stanmore Resources has blasted the Queensland government’s decision to hike coal royalties, saying the company is analyising the impact of the additional taxes on the business.
Queensland Treasurer Cameron Dick earlier this week ended a decade-long royalty freeze, imposing a progressive royalty tier system.
For coal prices trading above A$175/t, a royalty rate of 20% would apply, while coal trading at prices above A$225/t would be subject to a 30% royalty. A 40% royalty would be placed on coal tonnages trading above A$300/t.
The new royalty rates would become effective on July 1.
The introduction of the new royalty rates has been labelled a “tax grab” by industry bodies.
“Stanmore is very disappointed with these extraordinary tax increases given its commitments to the Isaac Downs project and re-opening of the Millennium and Mavis mines, as well as the very recent and significant $1.2-billion investment in the coal sector with the acquisition of our 80% interest BMC,” said Stanmore CEO Marcelo Matos.
“Royalty rates in Queensland were already among the highest in the world prior to these increases and come at a time when the Queensland coal industry was just recovering from the losses experienced during the market downturn in 2020 and 2021. These increases to the royalty rates, without formal notice or consultation with the industry, are unprecedented," said Matos.
"The impact of these increases will be felt mostly by workers and suppliers in regional Queensland communities that underpin the resource sector and make it Queensland’s largest export industry.”