'Unreasonable' coal taxes criticised by major miner

BHP Mitsubishi Alliance (BMA) Asset President Adam Lancey said the coal mining industry in Queensland was at risk due to the government acting "unpredictably and unreasonably", pushing future investors away.

Adam Lancey says Queensland's coal royalty rate changes were introduced without any consultation. (HANDOUT/MACARTHUR COAL)

Queensland has significant progressive coal royalties and some in the resources sector say they are the highest taxes in the world.

In 2022-23, the coal royalties delivered a $15 billion return to Queensland's coffers while in 2023-24 it was $9 billion.

The state government recently legislated that the coal royalty rates cannot be changed without parliamentary consideration. 

Mr Lancey said the resources sector has been left out of meaningful consultation on coal royalties unlike other states and territories.

"When the NSW government proposed their own changes to coal royalty rates, they took the time to engage with industry and sought to understand the impact these changes would have," he told Queensland's Resources Media Club on Tuesday.

But Queensland's coal royalty rate changes were introduced "without discussion or consultation", Mr Lancey said.

BMA - which operates five mines in central Queensland - was taxed more than 58 per cent in the state, he said.

Recent policy decisions had been "short-sighted" and forced the major coal producer and other investors to look for opportunities elsewhere, including Western Australia and South Australia, he said.

"Constructive dialogue allows us to explore the potential negative impacts of short-sighted policy decisions that might deliver an immediate sugar-hit – to the detriment of investment and to the detriment of future generations of Queenslanders," he said.

However, Deputy Premier and Treasurer Cameron Dick says Queensland's coal industry has never been stronger with the taxes funding much-needed projects.

Cameron Dick says coal royalties help deliver vital projects in Queensland. (Jono Searle/AAP PHOTOS)

"We have generated additional revenue for Queenslanders, we are giving that back ... particularly in regional Queensland," he said during budget estimates in July.

Mr Dick said since new royalty tiers were implemented in July 2022, most major coal producers had indicated plans to continue investing in Queensland.

"That includes BHP, who was highly critical of those new progressive coal royalties, and ... ultimately turned around and said the coal mines that operate in Queensland were high-value assets," Mr Dick said.

"They remain dedicated to Queensland."

With the election just over a month away, Mr Lancey called on both sides to consult coal industry players when introducing relevant policies, particularly regarding taxes.

"We're asking to come back to the table and create a shared vision on how Queensland can capitalise on the great assets, people and future of the resources sector," he said.

"Let's get the policy settings right for investment through industry and government collaboration, let's see our fair share of royalties back to the regions where it's come from."

The Liberal National Party is tracking ahead in the polls to win the election, ending Labor's three terms in government.