Coal industry to government: We have nothing more to give
THE QUEENSLAND coal lobby is attempting to fend off a possible gouging by the state, describing in a submission to government that one-in-four coal mines are running at a loss.
As the Newman Government attempts to improve the state's finances, the Queensland Resources Council has warned it not to pull that extra cash from the mining industry.
QRC chief Michael Roche said even with 8000 industry jobs lost since mid-2012, any new royalties may risk more cuts and more closures.
"Despite vigorous cost cutting, 25% of the coal currently produced in Queensland is being done so at a loss, including half of thermal coal production," Mr Roche said.
Some of those, he said, were only operating because whether they kept exporting coal or not, port and rail contracts had to be paid.
"With one out of every 10 tonnes of coal currently produced in Queensland in the red to the tune of more than $14, some mines are at extreme risk of shutdown.
"If that happens, Queensland could lose up to $1.8 billion in spending with more than 22,000 jobs in the line of fire."
The full submission made to the government by the QRC is here.