Queenslanders will continue to benefit from royalties from the higher royalty rate on bauxite exports set more than a decade ago under legislation considered by State Parliament on Wednesday.
Queensland Resources Council Chief Executive Ian Macfarlane said the Government’s legislation reinforced the existing minimum royalty rate on bauxite for export AUS$2/t and a minimum rate of AUS$1.50/t for bauxite used in Queensland, such as for alumina production.
“The Government has reaffirmed the 2008 royalty decision. It is critical that the rates of resource sector royalties remain stable. This financial year the Palaszczuk Government is set to receive more than AUS$5 billion in royalties,” he said.
However, Macfarlane said it is extremely concerning that the Queensland Government failed to consult with the industry prior to the legislation’s introduction to the State Parliament, and was unable to explain the purpose of the amendment, why it would apply retrospectively or justify why it was legislating to block legal challenges to bauxite royalty assessments in some circumstances.
“The Government’s lack of transparency and its failure to consult with industry before the amendment was put before the Parliament is a worrying trend, and only serves to undermine the good work of so many people in government and industry to attract new investment, new jobs, new exports and ultimately more royalties for Queensland. There is no suggestion the industry has not honoured its royalty obligations.”
“On behalf of QRC, I want to thank the Liberal National Party and Shadow Minister for Natural Resources and Mines Dale Last for its pressure on the Government to ensure the bauxite royalties collected on behalf of all Queenslanders was secure,” he said.
“Already Queensland’s attractiveness for resources sector investors is sliding. It’s critical that policy and the intent of that policy is clear, consistent and coherent. Queenslanders will pay the price if it’s not. QRC repeats its call on the government for stable rates of royalty or risk losing future investment, jobs, exports and royalties.”
The Queensland resources sector contributed AUS$62.9 billion in economic activity in 2017, supports one in eight jobs across the State, and delivers more than 80% of Queensland’s merchandise exports.
Read the article online at: https://www.globalminingreview.com/finance-business/29032019/qrc-receives-assurance-on-bauxite-royalties/