Subscribe free to our newsletters via your
. Energy News .

Coal investment in Queensland unlikely
by Staff Writers
Brisbane, Australia (UPI) Oct 17, 2012

Mining giant BHP Billiton Chief Executive Officer Marius Kloppers said new investments in the coal sector in the Australian state of Queensland are unlikely under current conditions.

Speaking Wednesday to the Brisbane Mining Club, Kloppers cited Queensland's "almost unparalleled resource base" of both energy coal and metallurgical coal.

While those resources will provide "substantial" opportunity in the decades ahead, Kloppers said, "the heavy cost of taxes, royalties, declining productivity and a strong Australian dollar means that further investment to grow these operations is much less likely."

Amid falling commodity prices, BHP has cut jobs and suspended production at its Norwich Park and Gregory coal mines in Queensland and delayed expansion plans for its Peak Downs coal mine, also in Queensland.

BHP has also scrapped its $30 billion expansion of the Olympic Dam copper and uranium mine project in South Australia.

Kloppers pointed to the cyclical nature of the mining industry, which he said had experienced unprecedented growth, fueled by the industrialization and urbanization of China.

But China's rapid rise drove key commodity prices like iron ore and coal to levels in the last decade which would not be repeated, he said.

"What we can instead expect is demand growth at more predictable and sustainable levels and more moderated pricing,'' he said.

In an apparent reference to new mining taxes, Kloppers said that it is "particularly unfortunate" that these costs are increasing at a time when industry profitability is declining.

Queensland's tax on coal royalties that took effect on Oct. 1 and the federal government's tax on coal and iron ore began in July.

''The next round of minerals investments in Australia will, almost without exception, be captured only if costs are decreased and productivity is improved. Companies and governments need to work in partnership towards attracting the next rounds of investments," Kloppers said.

Separately, the Queensland Resources Council said this week that a survey of the state 's coal company chief executives shows that they expect to cut costs in response to the increase in coal royalties.

Cost-cutting measures, the executives said, would include job cuts, including employees and contractors, as well as cuts in exploration expenditures.

The new royalty rates, coupled with company income tax rates, gives Queensland "the dubious honor of being the highest taxing coal jurisdiction globally," said the council's chief executive Michael Roche in a statement.

"While the current difficulties for the industry are part of the normal cycle, albeit exacerbated by a stubbornly high Australian dollar, issues such as increasing royalties and threats of further federal taxation increases do nothing to encourage continued investment in Australia's resources sector," Roche said.


Related Links
Surviving the Pits

Comment on this article via your Facebook, Yahoo, AOL, Hotmail login.

Share this article via these popular social media networks DiggDigg RedditReddit GoogleGoogle

Memory Foam Mattress Review
Newsletters :: SpaceDaily :: SpaceWar :: TerraDaily :: Energy Daily
XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News

Australian coal projects mega polluters?
Brisbane, Australia (UPI) Sep 20, 2012
Proposed coal mining expansion in the Galilee Basin in the Australian state of Queensland could create more carbon pollution than the entire United Kingdom or Canada, says a new Greenpeace report. Greenpeace says that five of the nine mega mines planned for the Galilee Basin would be bigger than any mine operating in Australia. Last month the Alpha coal mine - a joint venture b ... read more

EU blacklists Iran energy minister under new sanctions

GDF Suez chief confident in Brazil's electricity market

Canadians oppose Chinese takeover of energy firm

Michigan Energy Markets Poised to Foster Economic Growth and Job Creation

Iran denies sanctions hitting oil sector

Pitt Engineers to Design Affordable CO2 Thickener to Augment Oil Extraction

Maliki mulls ditching Exxon for Russians

Prestige oil spill disaster trial opens in Spain

DNV KEMA awarded framework agreement for German wind project developer SoWiTec

Sandia Labs benchmark helps wind industry measure success

Bigger wind turbines make greener electricity

EU wind power capacity reaches 100GW

Interior Greenlights New Era for Solar Development on Public Lands in the Southwest

India Needs Concentrated Solar Power to Achieve Safer, More Reliable Energy Future

Motech Americas launches UL 1,000 Volt Certified Modules for PV Installations in North America

KYOCERA Supplies Solar Modules for North Queensland

Fukushima panel chief hopes for change in Japan

Australia, India take first steps on nuclear deal

Australia to export uranium to India?

Tepco admits Fukushima mistakes

Which Biofuels Hold the Most Promise for the Future

Palm Oil Massive Source of Carbon Dioxide

Super-microbes engineered to solve world environmental problems

Computational Model IDs Potential Pathways to Improve Plant Oil Production

China launches civilian technology satellites

ChangE-2 Mission To Lagrange L2 Point

Meeting of heads of ESA and China Manned Space Agency

China Spacesat gets 18-million-USD gov't support

Climate negotiations relying on 'dangerous' thresholds to avoid catastrophe will not succeed

Science Of Global Climate Modeling Confirmed By Discoveries On Mars

Obama, Romney asked to debate on climate

Glaciers cracking in the presence of carbon dioxide

The content herein, unless otherwise known to be public domain, are Copyright 1995-2014 - Space Media Network. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement