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Is Queensland losing its allure for investors?

A new survey confirms Queensland is losing attractiveness for investors, Queensland Resources Council says.

The Fraser Institute’s latest annual survey of mining companies has ranked Australian States against other mining jurisdiction across the globe in key areas such as investor attractiveness and policy perception. The Queensland Resources Council (QRC) says the unfavourable results reflect the State Government’s snap decision to introduce the world’s highest coal royalty tax.

For policy perception, Queensland ranked 28th out of 62 jurisdictions, falling from 21st out of 84 in the previous year.

South Australia led Australian States for policy perception at 3rd, with WA 10th, and Tasmania 12th.

“The state fell to 28th place just ahead of Brazil and Victoria, and 16 places behind Tasmania,” QRC Chief Executive Ian Macfarlane said.

“The Queensland government introduced the high royalty increase for coal without consultation and with no regard to any stakeholders.

“Government policies play a significant role in a company or country’s decision to invest billions of dollars of into resources projects, and it’s clear many are now thinking twice about making those significant investment decisions in Queensland,” Mr Macfarlane said.

But it seems that this sentiment was not shared across the board. When surveyed for investor attractiveness, Queensland ranked 13th out of 62 jurisdictions, compared to 18th out of 84 in the previous year.

“The full impact of an investment downturn will be felt in five to ten years when new projects dry up along with thousands of jobs,” Macfarlane said.

“Queensland’s overall survey score was saved by the state’s attractive geology.

“Queensland’s economy, and thousands of future jobs, depend on long term investment in our resources sector and the State Government needs to take serious notice of survey results like these.”

For investor attractiveness outside of Queensland, WA ranked 2nd, NT was 6th, and SA 9th. Tasmania bottomed the list at 50th.

Queensland’s controversial three-tiered coal royalties system started on July 1, hitting producers with a 40 per cent tax on all coal prices of more than $300 a tonne.

The two accompanying tiers enforce a 20 per cent tax on coal above $175 and a 30 per cent tax on coal above $225, a reality that has left many majors pushing back on the proposal.

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