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Coal companies condemn royalty rate hike

September 11, 2023 7:02 am in by
Image: StoryBlocks

Hunter Valley coal mining companies have hit back at the State Government’s decision to increase the amount of tax it has to pay.

The coal royalty payments are set to go up for Hunter Valley coal mining operators by two-point-six percent from July 1 next year while the current $125 per tonne cap on supplies to power stations will end.

Glencore, which operates nine coal mines in our region, said they strongly believe that the State is already earning a fair return for its resources and that the coal industry’s contribution to the New South Wales economy goes way beyond royalties.

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The company said it’s very important the Government is not dismissive of the contribution of the coal sector to the State economy or the role the companies play in providing jobs, supporting communities and local businesses.

Glencore wants the Minns Government to provide policy clarity for the treatment of future coal mine investment and approvals as part of delivering on its coal royalty expectations.

Glencore says last year its coal business contributed $8.1 billion to the state’s economy and work for 6,320 employees and contractors.

The owner of Muswellbrook’s Mount Arthur coal mine has also condemned the decision.

BHP said this will increase costs amid already rising inflationary pressures and at a time when the rest of the world is investing heavily in resource sector development.

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