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27 MARCH 2019 AL CIRCLE

QRC concerned over a proposed legislation to amend the bauxite royalty rates in Queensland

EDITED BY : BEETHIKA BISWAS 2MINS READ

The Queensland Parliament has reaffirmed a royalty decision on bauxite in the parliament. But the Queensland Resources Council (QRC) has raised concerns over thelegislation to amend the royalty rates on bauxite exports. The Parliament maintained the existing minimum royalty rate on bauxite for export at A$2 per tonne and a minimum rate of A$1.50 per tonne for bauxite used domestically for alumina production.

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Expressing their concern, QRC CEO Ian Macfarlane said on Wednesday that the Queensland government should have consulted with the industry before introducing the legislation to state Parliament.  

“There is no suggestion the industry has not honoured its royalty obligations,” Macfarlane said.

He said that it is “extremely concerning” that the government failed to explain the purpose of the amendment and why it was legislating to block legal challenges to bauxite royalty assessments in some circumstances. 

He observed a lack of transparency in the matter and expressed concern on the trend.  He said that such actions undermine the good work of the government and the industry to attract new investment, new jobs, new exports and ultimately more royalties for Queensland. 

He pointed out that the Queensland state government would receive more than A$5-billion in royalties during this financial year.  He strongly urges for a stable royalty rate to protect investment, jobs and exports.

The push for legislation came after  Rio Tinto commissioned its A$2.6-billion Amrun bauxite mine, which would  increase Rio’s bauxite export capacity by about ten-million tonnes yearly.


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EDITED BY : BEETHIKA BISWAS 2MINS READ

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