Miners slam QLD Government over royalty rise

The Queensland Resources Council says the Queensland Government's move to hike coal royalties "could be the final straw" for the industry.

In a statement today QRC CEO Michael Roche said the new royalty rates would mean more job losses and further mine closures in the future.

He also said it was a "near certainty" that new major coal projects in QLD would not see the light of day under new royalties.

While the mining tax dictates state royalties will be refunded by the Commonwealth, the QRC says most QLD coal companies will not pay the MRRT and will therefore not receive compensation for state royalties.

"To say that [state royalties] will be offset against the MRRT might be true if companies were making super profits," a QRC spokesperson told Australian Mining.

"But companies aren't making profits, let alone super profits. Most of them are running in the red, so there's no obligation to pay an MRRT."

BHP Billiton also said previously any royalty rise would impact its QLD business.

"We have made it clear to the Queensland Government that any additional royalty impost will directly impact the profitability of our existing operations, and will affect future business decisions regarding growth capital allocation," it said.

Earlier this week BMA announced plans to close the Gregory mine in QLD due to high costs and low commodity prices.

To keep up to date with Australian Mining, subscribe to our free email newsletters delivered straight to your inbox. Click here.