If so, I would urge those readers to think again. We have in place in Queensland a royalty system which levels a flat rate of 7% on all producing coal mines to reflect an appropriate return to the community from state-owned resources.

The figure was arrived at after much thought by the government in 1994 and introduced by an amendment to the Mineral Resources Act.

It was gradually implemented over three-to-four years to introduce "equality" to the coal sector.

The royalty return reflects any increase in price that the producer receives. Therefore, based on this year's production and prices, my council estimated the government would receive a windfall of an additional $136 million, a staggering increase by any measure.

But in the state budget recently handed down by Treasurer Terry Mackenroth, the government announced that it was not enough. They are going to make a further grab for what appears to be at least $80 million to $100 million additional cash.

This is a classic case of moving the goal posts after the game has started. Companies who invested did so on the known costs, rules and requirements of the state government at that time. Quite apart from the additional income which the government receives anyway, they have now introduced a significant sovereign risk into investment in Queensland.

Even companies who announced new investments weeks ago now find the feasibility of their project has changed.

This not only poses a risk to the bottom line of companies, it threatens existing jobs, payments to contractors and the financial prospects for the life of the individual coal mines.

No one should believe that a further $100 million can be ripped out of the coal sector without seriously damaging our competitive position and hurting those who service the industry and are employed within it. That includes rail and port workers, transportation and service companies.

The mining companies have and will be fiercely resisting this extraordinary piece of misguided public policy by state government.

Sadly, from my point of view, the move also reflects a totally alien attitude towards mining that is not shown to other industries in this state. We have to ask whether the state government in fact values the industry as the largest exporter and the biggest investor, or whether it simply regards it as a plaything for Treasury.

* Michael Pinnock is chief executive of the Queensland Mining Council