A series of coal mine closures and job lay-offs and claims of an “un-Australian” royalty scheme might not be the last, a mining expert says.
Anglo American, BHP Mitsubishi Alliance and QCoal have shuttered mines and axed more than 1000 workers in Queensland in recent days.
And there could be more, mining analyst Gavin Wendt told AAP.
“We’ve had three miners in consecutive days come out and make the same decision, and all of these companies were complaining about the hike in royalties,” he said.
“There’s a consistency there, so the government needs to take a good, hard look at itself.”
BHP Mitsubishi Alliance this week blamed its 750 job cuts on the government’s “unsustainable” royalties regime and market conditions, claiming the state coal industry was reaching “crisis point”.
The alliance was branded “un-Australian” by the Queensland government after announcing the lay-offs, with a union accusing the mining giant of spreading fear.
Mr Wendt said it was an unfair remark by the government and the company was not at fault.
“It’s really un-Australian to double the royalty on a mining company so that their operations are effectively unsustainable,” he said.
“The finger of blame really should be pointed at the Queensland government, because their actions are un-Australian.”
BHP Mitsubishi Alliance’s Adam Lancey said his company paid about eight times more in royalties than it made in profit this week under the regime.
The former Labor government introduced a tiered royalties system in 2022.
Under its progressive structure, higher revenues are generated during boom periods of high coal prices but less is taken when market conditions deteriorate.
Queensland’s LNP government has ruled out changing the royalties scheme, keeping a 2024 state election promise.
It insists it is “not at war” with mining companies, saying it is delivering new investment, cutting red tape and creating long-term job opportunities across regional Queensland.
Lobby group Queensland Resources Council offered to work with the government to reform a “defective coal royalty regime” after the latest lay-offs announced by QCoal.
QCoal confirmed its lay-offs on Friday, announcing one of Cook Colliery mine’s two underground sites in central Queensland would shut down in the coming weeks.
“Job losses are a difficult decision for any business and it’s regrettable that companies are being forced into this position,” the council’s chief executive Janette Hewson said.
“This once again demonstrates that the world’s highest royalty rates, coupled with low prices and soaring production costs, have impacted the viability of Queensland operations.”
Ms Hewson said some companies were paying billions of dollars in royalties to the Queensland government despite making no profit or barely breaking even.
Premier David Crisafulli is set to hold a meeting with the resources sector next week.
But it is believed to have been organised weeks ago and not in response to royalties scheme criticism or lay-offs.