Coal industry prospers under bipartisan progressive coal royalties
Published Friday, 01 July, 2022 at 05:38 PM
Treasurer and Minister for Trade and Investment
The Honourable Cameron Dick
From today, the Palaszczuk Government’s new progressive coal royalty arrangements are ensuring that coal producers in Queensland are funding more regional hospitals while still generating record profits and maintaining historically high share prices.
Treasurer and Minister for Trade and Investment Cameron Dick said 1 July 2022 ushered in a new regime with bipartisan support that backs jobs, investment, wealth generation, and better healthcare.
“With spot prices for metallurgical coal trading at around double the long-term average, coal producers today will be making record profits,” the Treasurer said.
“But from today, the people of Queensland also start getting their fair share of those profits.
“Today alone, an estimated $2.1 million in extra royalties have been generated as a downpayment on new and expanded regional hospitals.”
The Treasurer said that the sharemarket performance of Australian-listed coal companies shows that international investors also recognise that progressive coal royalties with bipartisan political support are good for business.
“While the rest of the share market is down some 15% from six months ago, coal companies are well and truly up,” he said.
“This includes companies like Stanmore Resources (up 91%) and Bowen Coking Coal (up 32%), who operate wholly within Queensland’s new bipartisan royalty framework”
“If bipartisan progressive coal royalties were bad for those companies, why have their share prices outperformed the market?”
“Queensland coal mines remain good assets that will generate good returns into the long term, with profits protected by bipartisan progressive coal royalties that rise and fall with market pricing.”
The Treasurer said that, like all Queensland political parties, international investors recognise the progressive coal royalty regime represented good value for a premium Queensland product.
“Importantly, if prices go down, Queensland coal royalties will be lower than what New South Wales charges for its lower quality thermal coal.
“Notably, Indonesia has recently increased coal royalties on its thermal coal to a much higher level, up to 28% on prices above $100 per tonne.”
“The comparative rate in Queensland is less than half, at just 12.5%.”
The Treasurer said that the Government has also commenced a new advertising campaign to inform Queenslanders about how bipartisan progressive coal royalties will benefit industry and benefit Queensland.
“All Queenslanders are entitled to know the facts about our progressive coal royalty system, introduced with bipartisan support,” the Treasurer said.
“The Palaszczuk Government welcomes public debate on policy issues on an open, transparent, and factual basis, and this campaign will contribute to that environment.”
Media contact: Ben Doyle 0400 775 561