Major Queensland coal player BHP Mitsubishi Alliance (BMA) forked out $4.2 billion in royalties last financial year and is voicing further warnings on the risks government policies are placing on mining investment.

BMA’s Bowen Basin mining operations are estimated to have contributed 9 per cent of all State Government revenue excluding grants (through GST) last financial year.

The figures were revealed as BHP released its 2024 Economic Contribution Report, showing the miner contributed more than $50 billion in economic value to Australia for the year.

Related: Curragh takes a hit, owner rails against royalties slug

BMA asset president Adam Lancey warned that future investment in Queensland was at risk under current policies, including the royalty regime. 

“The outlook for Queensland’s world-leading, high-quality steelmaking coal is robust. We have the fundamentals to deliver long-term economic opportunity for Queensland,” he said. 

“However the challenge for us as a business – and the industry more broadly – is attractiveness for capital and investment relative to opportunities in other parts of the world. 

“Capital is global. It will flow to where the risk-returns ratio is most attractive.

“The resource industry needs policy and fiscal settings that give Queensland a competitive edge.”

BMA said Queensland remained one of the highest coal royalty jurisdictions in the world following the change to the royalty regime in 2022 and that this, combined with income taxes, equated to an adjusted effective tax rate of 58.3 per cent for the group.

The economic contribution report showed that BMA also contributed $8.1 billion to suppliers last financial year, including more than $1.6 billion spent with local suppliers, and that it funneled more than $11.8 million into social investment.

BHP has repeatedly expressed its concerns about the business environment in Queensland, putting a hold on growth projects.

At a press conference following the recent release of BHP’s financial results, BHP chief executive officer Mike Henry spoke about Queensland’s sovereign risk.

“… We’ve also been clear about the fact that we see the risk profile in Queensland being a bit too high for us and driving us towards looking at investment opportunities elsewhere and in other commodities,” he said. 

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