Queensland urges BHP to invest in the state
Queensland Treasurer Cameron Dick has warned BHP that he may cancel the major miner’s leases in the state unless the company backtracks on its decision to pause new investments.
In BHP’s operational review in January of this year, the company said that, while the market for coal is expected to be boosted due to increased demand from China, Queensland had become “uncompetitive” as a result of its controversial tax.
“The Queensland Government’s decision to raise coal royalties to the highest maximum rate in the world makes Queensland uncompetitive and puts investment and jobs at risk,” BHP stated.
“We see strong long-term demand from global steelmakers for Queensland’s high-quality metallurgical coal; however, in the absence of government policy that is both competitive and predictable, we are unable to make significant new investments in Queensland.”
Following the review, BHP said it planned to divest the Daunia and Blackwater coal mines in Queensland.
Now, Dick has urged the miner to reconsider, saying that the Queensland Government would look at cancelling BHP’s leases if it doesn’t complete its investments.
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