Indicating concerns about an increase in mining royalties are not confined to Western Australia, the Queensland Resources Council (QRC) yesterday called on the State Treasurer Andrew Fraser to consult with industry before making any changes.
QRC chief executive Michael Roche said many companies were concerned about views within the Government that they have a “limitless ability to pay more and more in royalties, taxes and charges.”
“The facts are that while resources in the ground in Queensland are not mobile, capital for resource projects are very mobile indeed,” he said in a pre-budget submission to the Treasurer.
“Increasingly, Queensland resource sector leaders have to weigh up the sovereign risk associated with operating in the State against new opportunities in expanding minerals and energy provinces in Africa, Asia and South America.”
Roche called on the Government to honour a promise from the last state election that there would be no increase in royalties.
“We expect the Government will honour the written promise to consult with industry on any changes to the royalty regime for minerals, oil and gas and undertake a Regulatory Impact Statement prior to contemplating significant royalty changes,” he said.