MANAGEMENT

Trad questions 'exaggerated' Qld coal export impact claims

Throws doubts on claims of $500 million a year royalty loss.

This article is 7 years old. Images might not display.

Questioned about it at a press conference in Queensland Trad said she thought some of the claims by both sides - Aurizon and the Queensland Resources Council - had been exaggerated.

She said the Queensland government was modelling what it believed the impact of the maintenance changes, which are expected to strip 20 million tonnes per annum from the Central Queensland Coal Network, would have on the state's budget.

That budget is due to be handed down on June 12.

"I will be making some statements in the state budget in relation to that [the royalty impact of Aurizon's changed maintenance practices]," Trad said.

She said she had been having constant conversations with both Aurizon and the QRC and was continuing to do so.

The issue has arisen because Aurizon insisted it had to remove the "flexibility" from its maintenance practices to meet the requirements of the Queensland Competition Authority's draft ruling on the CQCN.

It said the changes the draft ruling called for would be retrospective to July 1 2017, when the ruling was ratified.

Removing that flexibility, which will cause more track outages than its previous practices, will reduce the amount of coal that can be carried by the network.

The QCA released a consultation paper on Wednesday that rubbished some of Aurizon's claims.

The QRC estimated the change would cost the Queensland government $500 million a year in royalties.

QRC chief executive Ian Macfarlane said he hoped Trad was right and that the impact would not be so high.

However, he pointed out that Treasury was out in its previous royalties prediction by $1 billion.

"We hope this isn't going to be a major problem for Queensland," Macfarlane said.

Expert-led Insights reports built on robust data, rigorous analysis and expert commentary covering mining Exploration, Future Fleets, Automation and Digitalisation, and ESG.

Expert-led Insights reports built on robust data, rigorous analysis and expert commentary covering mining Exploration, Future Fleets, Automation and Digitalisation, and ESG.

editions

ESG Index 2025: Benchmarking the Future of Sustainable Mining

The ESG Index provides an in-depth evaluation of the ESG performance of 60+ of the world’s largest mining companies. It assesses companies across 10 weighted indicators within 6 essential ESG pillars.

editions

Automation and Digitalisation Insights 2025

Discover how mining companies and investors are adopting, deploying and evaluating new technologies.

editions

Mining IQ Exploration Insights 2025

Gain exclusive insights into the world of exploration in a comprehensive review of the top trending technologies, intercepts, discoveries and more.

editions

Future Fleets Insights 2025

Mining IQ Future Fleets Insights 2025 looks at how companies are using alternative energy sources to cut greenhouse gas emmissions