Seven major coal exporting companies and the Queensland Resources Council were at this morning’s meeting with the treasurer.

“While not seeking or expecting commitments to budget changes, we were able to earn the treasurer’s support for a process to work with industry in more closely examining the full implications of the super royalty, changes to other mineral royalties and a new safety levy across the mining industry costing an additional $26 million next financial year," QRC chief executive Michael Roche said.

“We were able to brief the treasurer on the industry’s skyrocketing development costs and the financial pressures arising from recovery efforts following floods in the Bowen Basin earlier this year."

The rise in royalties is from 7% to 10% for coal sold over $100 per tonne and will represent royalties of about $3.2 billion for the state in 2008-09.

“One of the important issues that we were able to point out to the treasurer today is that the $100 a tonne coal price threshold is in reality a break-even point for several mines in Queensland," Roche said.

“This is a fact of life for an expanding coal industry that could have been shared with the Government from the outset through a consultation process.

“In coming weeks, our task is to compile a host of industry information and present the argument that contract price spikes are short-term relief from now spiralling costs associated with the development of world-class mining operations."