As of today, the Queensland Government’s new progressive coal royalty arrangements come into force.
Treasurer and Minister for Trade and Investment Cameron Dick said with spot prices for metallurgical coal trading at around double the long-term average, coal producers make record profits.
“But from today, the people of Queensland also start getting their fair share of those profits.
“Today alone, an estimated $2.1 million in extra royalties have been generated.”
The Treasurer said that the sharemarket performance of Australian-listed coal companies shows that international investors also recognise that progressive coal royalties with bipartisan political support are good for business.
“While the rest of the share market is down some 15 per cent from six months ago, coal companies are well and truly up,” he said.
“This includes companies like Stanmore Resources (up 91%) and Bowen Coking Coal (up 32%), who operate wholly within Queensland’s new bipartisan royalty framework.
“If bipartisan progressive coal royalties were bad for those companies, why have their share prices outperformed the market?”
“Queensland coal mines remain good assets that will generate good returns into the long term, with profits protected by bipartisan progressive coal royalties that rise and fall with market pricing.”
“Importantly, if prices go down, Queensland coal royalties will be lower than what New South Wales charges for its lower quality thermal coal.
“Notably, Indonesia has recently increased coal royalties on its thermal coal to a much higher level, up to 28 per cent on prices above $100 per tonne.”
“The comparative rate in Queensland is less than half, at just 12.5 per cent.”
