BHP will make no further investments in Queensland due to the state’s coal royalty tax.
In its operational review for the December quarter, BHP said that, while the market for coal is expected to be boosted due to increased demand from China, Queensland has become “uncompetitive” as a result of its controversial tax.
“The Queensland Government’s decision to raise coal royalties to the highest maximum rate in the world makes Queensland uncompetitive and puts investment and jobs at risk,” BHP stated.
“We see strong long-term demand from global steelmakers for Queensland’s high-quality metallurgical coal; however, in the absence of government policy that is both competitive and predictable, we are unable to make significant new investments in Queensland.”
BHP has been reassessing Queensland investments since August 2022, when the royalty hike was announced.
That same month, BHP put plans for the Blackwater South mine in central Queensland on hold for the foreseeable future.
Queensland Resources Council (QRC) chief executive Ian Macfarlane has been vocal in his opposition to the coal royalty rates, calling on the Queensland Government to urgently review its decision.
“You can’t over-tax an industry, let alone Queensland’s most important economic driver, and expect business to continue as usual,” Macfarlane said.
“Our mining and energy sector is the number one contributor to the state economy, number one regional employer and number one export industry.
“We support the jobs of 450,000-plus Queenslanders and 14,000-plus businesses, who all pay taxes to help fund doctors, nurses, teachers and other government services.”
BHP said in August 2022 that the royalty hike was “quite sudden” and that the end of operations at the BHP Mitsubishi Alliance (BMA) sites could be “earlier than previously anticipated”.
Macfarlane said it was disappointing to hear State Treasurer Cameron Dick continue to say in the media “coal royalties are worth fighting for”.
“Queensland’s resources sector is made up of Queenslanders, working and earning a living to support their families, so this is an odd statement for a treasurer to make,” Macfarlane said.
“Why fight the resources sector at all?
“We need the State Government to work with us, to keep Queensland strong.”