Australia's coal mining tax hike may drag down mining development
24 Jun 2022 15:54 reported by Mike Lo
Queensland, Australia, recently announced that it would increase coal mining royalties. However, the Minerals Council of Australia (MCA) warned that this move might affect investors' willingness to invest in other minerals in the state.
Queensland has not raised coal royalties for ten consecutive years and was expected to change the initial 15% single tax rate to a 20%, 30%, or 40% tax rate depending on the coal price from July 1.
However, MCA indicated that the Queensland government's short-sighted move would drag production and scare away investors in the long run.
Australia faces intense competition from emerging African and traditional mining areas in South America and Canada. In addition, Queensland has the world's highest tax on minerals, which may jeopardize the development of mining in Australia in the future.
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