Major miner BHP will continue to shun Queensland and prioritise investment in interstate and international markets due to the state government’s refusal to budge on coal royalties.
In the latest broadside at the Crisafulli government, Ross McEwan, chair of Australia’s largest company, again blasted the state’s tax settings for spoiling business.
BHP has led lobbying efforts against royalties, which were raised by the former Labor government in 2022.
In opposition, the LNP was critical of the tax regime but has repeatedly said it would not wind back the settings, despite a heated and concerted campaign from industry heavyweights.
“When you’re making no money with an operation in an area like Queensland because the royalties just spoiled your business, you don’t invest,” McEwan told a business summit hosted by The Australian Financial Review on Tuesday.
“So, our process right now is zero investment into Queensland.”
The former NAB chief executive said the settings served as a stark contrast to the eagerness of other states and countries, including Singapore, Argentina, Canada and the US, which McEwan claimed were all actively pitching to the world’s biggest miner.
“[President Javier] Milei in Argentina wants us there. [Canadian] Prime Minister [Mark] Carney wants us there. [US] President [Donald] Trump wants us there. South Australia wants us there. Western Australia are great to deal with – both Western and South Australia,” he said.
“And where does the money flow? Into those areas that are actually most willing and keen to work with you, that’s where the money goes.
“It should be something, I think, that Australians should all think about, because it’s successive business that is successful employers, that pay people well, that pay taxes. And if we just get that right, I know it’s simplistic, but I think if we start there, we’d have another 30 great years in Australia.”
McEwan’s latest barb came after BHP blamed the state’s tax policy for the company’s decision to slash 750 jobs in Queensland as it mothball the open-pit Saraji South coal mine in the Bowen Basin in September.
It then revealed last month it was paying more taxes in Queensland than it was collecting in profits, when chief financial officer Vandita Pant described “acute” challenges in operations due to the royalties regime and the cyclical downturn in coal prices.
But despite the sector heavyweight’s continued lobbying, Treasurer David Janetzki again confirmed the government would not modify the tax settings.
“The Crisafulli government is providing certainty for the coal industry in Queensland with faster decisions, streamlined approvals and a stable royalty regime, exactly as we committed before the election. There will be no changes to Queensland’s royalty regime,” he said in response to questions from this masthead.
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James Hall is the News Director at the Brisbane Times. He is the former Queensland correspondent at The Australian Financial Review and has reported for a range of mastheads across the country, specialising on political and finance reporting.Connect via X or email.From our partners
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