Australia’s biggest mining company has confirmed that significant new investment in Queensland is on hold because of the State Government’s decision to lift coal royalty tax rates to the highest in the world:
In a quarterly operations review released to the ASX, BHP said:
“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. 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. This increase to royalties will impact the local businesses, suppliers and communities in Central Queensland where we operate.”
When will the government rethink this tax hike?