Coal mining royalties frozen for 10 years
Published Tuesday, 11 September, 2012 at 03:38 PM
Deputy Premier, Minister for State Development, Infrastructure and Planning
The Honourable Jeff Seeney
Coal royalties will be frozen in Queensland for the next decade, the Newman Government announced in today’s Budget.
Deputy Premier and Minister for State Development, Infrastructure and Planning Jeff Seeney said the Government had taken the decision to freeze royalties from October 1 to provide long term certainty for the industry.
“Coal mining is critically important to Queensland and this guarantee to keep royalties unchanged for the next decade allows companies to make investment decisions with total confidence,” Mr Seeney said.
“This is a first in Queensland – no other government has given this sort of guarantee.
“It provides security and certainty for the years ahead and we realise how important that is to this industry.
“We have been forced by the fiscal circumstances left by Labor at the state level and the threat to our royalties posed by Federal Labor’s Mineral Resources Rent Tax (MRRT) to increase royalty rates in this Budget.
“But we want the industry to know that it will not be followed by further rises in coming years.
“Coal is our most lucrative mining commodity and when the industry is at full production, it is worth millions of dollars a day to the state in royalties.
“We will do everything we can to grow the industry and protect that income stream for Queenslanders.
Mr Seeney said that on top of the royalty rate freeze, the Newman Government would aggressively examine the costs government regulation imposed on mining.
“We will look to reduce or eliminate those costs where possible,” he said.
“We are among the world’s biggest coal producers, but we are not the only one and we will do everything we can to ensure that Queensland remains a preferred destination for mining investment with the most efficient coal industry in the world.”
[ENDS] 11 September 2012
Media Contact: John Wiseman – 0409 791 281
Deputy Premier and Minister for State Development, Infrastructure and Planning Jeff Seeney said the Government had taken the decision to freeze royalties from October 1 to provide long term certainty for the industry.
“Coal mining is critically important to Queensland and this guarantee to keep royalties unchanged for the next decade allows companies to make investment decisions with total confidence,” Mr Seeney said.
“This is a first in Queensland – no other government has given this sort of guarantee.
“It provides security and certainty for the years ahead and we realise how important that is to this industry.
“We have been forced by the fiscal circumstances left by Labor at the state level and the threat to our royalties posed by Federal Labor’s Mineral Resources Rent Tax (MRRT) to increase royalty rates in this Budget.
“But we want the industry to know that it will not be followed by further rises in coming years.
“Coal is our most lucrative mining commodity and when the industry is at full production, it is worth millions of dollars a day to the state in royalties.
“We will do everything we can to grow the industry and protect that income stream for Queenslanders.
Mr Seeney said that on top of the royalty rate freeze, the Newman Government would aggressively examine the costs government regulation imposed on mining.
“We will look to reduce or eliminate those costs where possible,” he said.
“We are among the world’s biggest coal producers, but we are not the only one and we will do everything we can to ensure that Queensland remains a preferred destination for mining investment with the most efficient coal industry in the world.”
[ENDS] 11 September 2012
Media Contact: John Wiseman – 0409 791 281