Peabody Energy said it strongly opposes the Queensland Government’s new coal royalty proposal, which would add to existing cost and pricing pressures for the Queensland mining sector.

The company said the new royalties were among the highest in the world and would significantly damage Queensland’s ability to stay competitive.

Mr Eric Ford president Australia of Peabody Energy said that “Introducing these royalties when Australian coal miners are contending with deceleration in China, recession in Europe, a rising Australian dollar and continuing local inflationary pressures is economically irresponsible. We strongly urge the Queensland government to reconsider this proposal, which will jeopardize future investment and put all Queensland mining jobs at risk at a time when mining companies are already reviewing project investments and production levels. We have seen a number of industry cutbacks announced at current pricing, and these royalties could push many other operations over the edge.”

Source - Peabody

(www.coalguru.com)