Coal producers have been informed of the cut of $2.8 million a month, roughly 24c a tonne. QR says the adjusted freight rates reflect the revised reference tariffs included in QR's revised draft access undertaking to the Queensland Competition Authority (QCA), which was submitted last week.

Outstanding issues remain around ring fencing arrangements, capacity management issues relating to take-or-pay contracts, and rolling stock standards as they impact on safety and QR's legal liability.

While the 24c/t appears substantial – commercial freight rates in Queensland are around $6.50/t – Queensland coal producers still pay much more than their NSW producers who pay $3.50 to $4.20/t.

Observers believe this is the first in a protracted period of negotiation between the QCA and QR to get agreement on fair and equitable rates.

In related news the Queensland government decided to delay implementation of its coal royalty regime until January 1.

The Queensland Mining Council (QMC) said the government had forecast additional revenue of $54 million for the nine months of this financial year and that the decision to delay its implementation will lose the government $18 million. The coal industry believes that higher coal prices and bigger volumes will generate considerably more revenue than the government forecast.