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New campaign launched against coal tax

Wollongong Resources is set to close the doors of its Russell Vale coal mine in New South Wales.

The fight against the proposed thermal coal tax continues, with the Queensland resources sector launching a large-scale media campaign to warn about its impacts.

According to Queensland Resources Council (QRC) chief executive Ian Macfarlane, the ‘Keep Queensland Competitive’ campaign will be launched on behalf of the state’s entire resources sector.

“The Queensland Government has severely damaged the state’s international reputation as a reliable place for resources investment by more than doubling the coal royalty tax rate to the highest in the world, without warning and without consultation,” Macfarlane said.

“Queensland’s top tier rate is now an incredible five times that of New South Wales.”

Macfarlane has called the proposed tax a “short-sighted decision” and said that major trading partners have already questioned their future investment in new projects in Queensland, including BHP and Peabody Energy.

“These won’t be the only companies to move their investment focus away from Queensland, with the royalty tax increase now being discussed in boardrooms around the world,” Macfarlane said.

Japanese ambassador Shingo Yamagami has supported this claim, emerging as a vocal critic of the Queensland Government’s decision in June to introduce a tiered royalty rate many say is aimed at cashing in on record coal prices driven by Russia’s invasion of Ukraine.

“Japanese coal companies are yet to see any glimmer of hope that the situation will improve,” Yamagami told the QRC’s annual forum in Brisbane on Wednesday.

“Alongside coal, Japanese investment and trade in Australian gas is a cornerstone of our partnership based on trust.”

Macfarlane said the QRC’s member-funded advertising campaign will let Queenslanders know exactly how the royalty tax is affecting resources companies, and why it’s placing jobs and future projects at risk.

“Investment in resources projects takes a lot of time and a lot of capital, and companies will simply look elsewhere if they think the goalposts can be moved at any time without notice,” he said.

“It is inconceivable any government would risk that by imposing an unprecedented tax increase on a sector that delivers so much stability and economic opportunity for Queensland.

“We are calling on the Queensland Government to properly engage with the resources sector, so we can work together to continue supporting jobs and the economy of this great state by encouraging investment in new projects, instead of forcing companies to go elsewhere.

“This is about protecting jobs, investment and a strong future for Queensland.”

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