Coal royalties surge to bring State Budget bonanza

Record coal royalties will deliver a further $1 billion on top of the State Government’s Budget projections, the Queensland Resources Council says.

The QRC has forecast that royalties on thermal and metallurgical coals will set a new record of $4.46 billion this financial year (2018-19) – or the equivalent of $12 million a day.

“At the time of the State Budget last year, the Government forecast coal royalties to deliver $3.52 billion. Compare that to five years ago (in 2013-14) when coal royalties paid to the then Newman Government were less than $2 billion,” QRC Chief Executive Ian Macfarlane said.

“Demand for Queensland coal is very strong. Overseas demand means we are expected to once again sell more than 200 million tonnes of coal. Prices are strong, particularly for metallurgical coal with indicator prices above US$200 per tonne.”

Mr Macfarlane said to put the coal royalties into context, the $4.46 billion pays for almost half of the Education budget for 2018-19 ($9.37 billion).

This was in addition to the $43.4 billion coal production directly injects into the State’s economy – representing 13 per cent of Queensland’s gross regional product.

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