Topics:  martin ferguson, michael roche, minerals resources and rent tax, mining royalties

Royalties to hurt miners: Ferguson

Federal Resources Minister Martin Ferguson: Recent actions by the Queensland Government will only exacerbate the impacts of lower commodity prices.
Federal Resources Minister Martin Ferguson: Recent actions by the Queensland Government will only exacerbate the impacts of lower commodity prices.

FEDERAL Resources Minister Martin Ferguson has taken a dig at the Queensland Government move to increase mining royalties.

But Mr Ferguson, in a speech to industry leaders yesterday, failed to mention the Commonwealth's minerals resources and rent tax.

He said the falls in commodity prices, particularly for coal and iron ore, would see minerals and energy export revenue fall 2% in 2012-13 to $190 billion.

"I imagine most of you would be aware of my comments that we have seen the end of the current cycle of high commodity prices," he said.

Mr Ferguson said the recent announcement of job losses at BHP and Xstrata operations in Queensland indicated the "squeeze on margins - a squeeze not assisted by royalty changes that focus on price, not profitability".

"Recent actions by the Queensland Government will only exacerbate the impacts of lower commodity prices."

But Queensland Resources Council chief executive Michael Roche said on Tuesday that while coal prices were going down, "costs in Queensland have been heading in the other direction".

He said low cost metallurgical coal producing countries like Mongolia and Mozambique were making major in-roads into Australia's traditional markets in Japan, Korea, India and China.

"This is why the Queensland Budget's coal royalties hike can't be viewed in isolation or written off as a minor impost," he said. "You can't have the highest taxing, highest cost coal industry in the world and expect to keep sailing along merrily.

"That is why seeing job losses, mine closures and the shelving of new coal projects."



Local Real Estate

Featured Jobs

Ipswich jobs listed daily



Around the Network

Local Partners

LATEST DEALS AND OFFERS

Have Your Say

Balancing the books: Queensland's...
Learn More

Cars For Sale

Find cars for sale online now.
Learn More

Property Listings

Search for a property online right now.
Learn More

Local Profile

Stay Connected

Get the news as it happens, in your inbox

You can change the newsletters you are subscribed to when you edit your profile

Edit Profile


Special Offers

Latest deals and offers

Horoscopes

Aries

You could be almost terrified waiting for some news, particularly if this is from a government department or employer. Distract yourself to...

read more

Marketplace

Special Offers & Promotions

Compare & Save