BHP CEO Mike Henry has been putting pressure on the debt-heavy Queensland Labor government over its controversial decision to increase mining royalties in the state. Henry stated that these recent policies from both the state and federal governments would force the global mining giant to withdraw investment from the region, despite significant opportunities in critical mineral mining. He emphasized that when governments act unpredictably and unreasonably, they create more risk for investment. In contrast, he praised Chile for its respectful and collaborative approach to raising copper royalties and expressed BHP’s intention to continue investing in that country. As for Queensland, Henry criticized the lack of industry engagement, effort to understand, or interest in understanding the impact of raising royalties, noting that it now has the highest coal taxing regime for mining in the world.
Henry also criticized the federal Labor government’s recent changes to workplace laws, including multi-employer bargaining and Same Job Same Pay laws. The Same Job Same Pay law requires businesses to pay contractors the same rates and benefits as full-time workers, which BHP has estimated will cost the company $1.3 billion per year.
Despite the frustrations expressed by BHP, Queensland Premier Annastacia Palaszczuk announced initiatives to position the state as a global leader in critical mineral mining. These initiatives include providing free rent for exploration permits, financial support for critical minerals projects, and the establishment of a Critical Minerals and Battery Fund.
The Queensland government raised mining royalties last year in order to address rising public spending. The new scheme imposes a 20-40 percent tax on each tonne of coal sold above specified price thresholds. The move was met with criticism, including from the Japanese government. However, the royalty scheme has contributed to a budget surplus for the state, although net debt is projected to continue rising in the coming years.