Crisis at coalface a threat to us all

Four years on from June 2022, when the state Labor government first announced one of the world’s most expensive mining royalty regimes, the impact on one of Queensland’s most lucrative revenue sources over the past half century is beginning to kick in.

Figures released by the International Energy Agency on Thursday confirm coal is on an upwards trajectory globally with investment set to rise by 4 per cent to $180bn in 2026 – the highest level in 14 years.

Global investment in coal has been increasing every year for the past six years, yet investment in coal-rich Australia remains flat year on year.

It is now clear that the American-Iran conflict has pushed coal back to the forefront as countries seek energy security while Asian countries are revisiting coal as an energy solution.

Yet Queensland, the home to one of the world’s richest deposits of high-grade bituminous and prime metallurgical or coking coal, is no longer the place to do business if you are a coal miner.

An official global index, released by the Fraser Institute, which provides annual analysis of mining in 68 jurisdictions based on both geology and government policy, has put Queensland behind the Labor states of SA and WA as a more attractive place for miners.

Canberra-based industry group Coal Australia questions whether the Queensland LNP has lost touch with its philosophical roots given the party’s historic links with business and mining.

“Traditionally, Liberal National governments have not supported taxing business before they’ve even made a profit,’’ says Coal Australia chief executive Stuart Bocking.

“And recent company collapses, with the loss of hundreds of jobs, are a symptom of this.

“Queensland’s coal royalty rates are the highest in the world and, not only are they leading to job losses at existing mine sites, but they are also a severe impediment to new investment.

“These unsustainable royalties are not just a tax on industry.

“They have become a tax on every coal mining job and the many small businesses supported by coal mining communities.’’

Mining in Queensland continues and new projects will start up as the world’s thirst for the ancient energy source continues despite persistent claims from some quarters that coal is fading away.

Ordinary Queenslanders still benefit from billions of dollars of coal royalties, as they have since the 1970s when public servant and later head of the Queensland Treasury Corporation, Sir Leo Hielscher, first began carving off massive chunks of coal company profit and funnelling it into Queensland Treasury coffers.

News this week that Premier David Crisafulli indicated to a Queensland mayor that he may be willing to negotiate royalty deals with those developers wanting to start new coal projects was no doubt warmly welcomed by the industry.

But the Premier’s office has denied there will be any changes, and the ruling LNP has consistently maintained a hard line on the issue, refusing to turn its back on these massive revenue streams which it has factored into budget estimates until the 2028-29 financial year when there is a possibility that the LNP (if it retains power) will review the regime.

Yet the state’s mining sector, unquestionably, is going through a period of massive upheaval, and industry points to excessive royalties as a prime cause of disruption.

Vitrinite’s Vulcan mine, 35km south of Moranbah, went into care and maintenance in January and then into the hands of the receivers less than a year after Queensland Resources Minister Dale Last visited the mine and declared 450 jobs would be on offer by 2027.

Bowen Coking Coal entered administration on July 30, 2025 – the day the Queensland Revenue Office refused to defer its royalty payments.

Anglo American’s entire Queensland steelmaking coal portfolio is back on the market after Peabody Energy terminated a $3.775bn purchase in August 2025.

The assets – including Moranbah North, Grosvenor and the Capcoal complex – are now being remarketed while Anglo also cut more than 200 Queensland jobs in September 2025.

QCoal closed one of two underground units at Cook Colliery near Blackwater in September 2025, putting 170 jobs at risk, while the company has shelled out $25m in royalties since reopening in 2022 without ever turning a profit.

Isaac Regional Council Mayor Kelly Vea Vea has put the combined regional job toll at more than 1000.

The Queensland Resources Council says Queensland now has the highest coal royalty burden in the world. While the highest official royalty rate is 40 per cent when coal prices soar, the council says effective tax and royalty rates carve off 54 per cent and can reach as high as 67 per cent for some operators.

The council says mining jobs fell 24 per cent in this state between 2022 and May 2025, with more than 1000 direct jobs lost since, while the sector shrank by $9.6bn last financial year.

The council says operating costs are up 29 per cent since 2022 with 164 million tonnes of coal at risk and 27 projects “stalled’’ in Queensland.

Resources Council chief executive Janette Hewson says Queenslanders deserve the full long-term benefit of their natural resources, and that means a royalty system encouraging investment and expanded production.

“Our world-class coal industry can grow to meet future strong demand and to create opportunities for all Queenslanders to benefit,” Hewson says.

“Growth means secure jobs, more work for local suppliers and stronger regional communities.

But we’re at a turning point.

“Since 2022, Queensland has imposed the highest coal royalties in the world, putting the industry under mounting pressure,” Hewson says.

“Those settings are compounding every other challenge – rising operating costs, currency volatility and fierce global competition for investment.

“Without reform, we risk locking in a cycle of declining investment, shrinking output and lower long-term revenues for Queenslanders leaving less funding for the schools, hospitals and services royalties support.

“The industry is ready to work with the government to get this right, but it requires a commitment to review Queensland’s coal royalty settings.”

Dean Kirkwood, managing director of the Mackay-based Resource Industry Network, which represents mining and allied industries, says the situation is grim in a region heavily reliant on coal.

“The resources sector has been the driving force behind Queensland for decades now,” he says.

“It has in the past gone through some very tough times, but the cost pressures the coal mine operators are facing at the moment are greater than they have ever been.

“Put that on top of the world’s highest royalty scheme, and we are in trouble.”

The supply chain is being hit hardest.

“These businesses, the engineers, manufacturers, transport and logistics companies and many more, are reliant on the coal sector for their survival,” Kirkwood says.

“We were seeing our members pull back on hiring, pause investment and take a more cautious approach, but things are getting worse now.

“What we’re hearing from our members is that the impacts are being felt right across communities, with reductions in funding, sponsorships and donations to local sporting clubs and community groups.

“The social fabric that the resources sector has long supported is starting to fray.”

As Bocking says, with global demand for coal at a record high, Queensland should be taking advantage and turning the demand into “a jobs and wealth bonanza for the state”.

He wants the royalties issue referred to the Productivity Commission for an independent review and analysis.

“We also support any government efforts that consider a reduction in the royalty rates, the indexation of royalty thresholds, or meaningful offsets for investment,” he says.

Article published in the Courier Mail, 30 May 2026