“The downside for coal is that this budget locks in an uncompetitive set of coal royalty rates from last year’s budget and leaves Queensland producers with among the highest effective taxation rates in the world,” Queensland Resources Council chief executive Michael Roche said.
“Despite a sombre global price outlook and increasing competition from lower cost producers, Queensland’s minerals and energy sector was being forecast by Treasury to return around $14 billion in royalties over the next four years, including the start of major contributions from the export coal-seam gas industry.”
The QRC did welcome $30 million of Geological Survey of Queensland funding over three years.
Roche said the allocation to support Geological Survey of Queensland initiatives was tangible evidence of the government’s intent to get behind the state’s exploration sector.
“It’s encouraging that despite budget constraints, the state government is investing in the long-term by strengthening the foundations for discovery,” he said.
Queensland Exploration Council chairman Geoff Dickie said accurate and accessible geoscientific information was a major pre-cursor to exploration investment.
“Queensland is in full-on competition for the exploration dollar – both domestically and globally,” he said.
“The high minerals and energy prospectivity of the state does not mean that explorers must beat a path to our door. But at the back of every explorer’s mind is the dream of finding another Mount Isa.”