After meeting with mining companies in the Hunter, the NSW Government has announced they will freeze royalty taxes for the duration of the price cap on coal.
The government capped coal at $125 a tonne in a bid to help ease energy bill pressure for households and businesses.
But, companies like BHP who own Mt Arthur Coal at Muswellbrook and Whitehaven who own mines in the north west, have been vocal in their concerns that the cap would cost their businesses more money over time.
NSW Deputy Premier and Minister for Regional NSW Paul Toole announced today the tax they would normally impose on mining royalties from mines will be frozen until the price cap is no more next June.
“Federal Labor’s decision to impose a price cap on domestic supplies of coal and gas highlights the importance of a resilient mining sector in NSW, given that we remain reliant on coal to generate electricity,
“Today’s announcement to impose a freeze on royalty rates for the duration of the coal price cap recognises the challenges this has created for the mining sector.
“Higher export coal prices have already helped to bolster mining royalty receipts over the past two years, delivering record royalty receipts for the people of NSW, even while the royalty rate remains unchanged.”
In the financial year to June 30 2021, coal royalties totalled $1.22 billion; in FY22, coal royalties totalled $3.53 billion; and in this financial year royalties are forecast at between $5-6 billion.