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Thursday, 08 December 22
COAL ROYALTY PAYMENTS BOOST AUSTRALIAN STATE'S BUDGET FORECAST - REUTERS
Australia’s Queensland state on Wednesday forecast a record surplus for the current financial year, largely driven by higher royalty payments from coal producers on the back of a sharp rise in global energy prices due to Russia’s war in Ukraine.
 
Coal and petroleum royalty revenue has been revised up by A$5.82 billion ($3.90 billion) for the financial year ending June next year, state Treasurer Cameron Dick said in a budget update.
 
“Coal royalties are worth fighting for. Queenslanders deserve their fair share and they will receive it,” Dick said.
 
Queensland, home to coal mines owned by majors BHP Group Ltd, Glencore PLC, Anglo American PLC and Peabody Energy Corp BTU.N, in June ended a 10-year freeze on royalty rates and raised them to capture windfall profit.
 
A record surplus of A$5.2 billion is now forecast for the state for 2022-23.
 
The budget update comes ahead of a meeting of federal and state leaders called by Prime Minister Anthony Albanese on Friday to discuss enforcing price caps on gas and coal to contain soaring power prices.
 
Albanese has said his government is considering price caps, but some resource-heavy states have pushed back as it could hit the revenue they make from royalty payments. Queensland has said it would seek compensation from the federal government for any revenue loss.
 
Federal Treasurer Jim Chalmers said his government will engage with the states on all matters including compensation but any potential financial support will not be a “blank cheque”.
 
“We’ve got a trillion dollars in debt, we’ve got deficits as far as the eye can see … so we need to be responsible about it but we also need to be reasonable about it and that’s what we’re doing,” Chalmers told ABC Radio.
Source: Reuters


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