The trusting relationship between Queensland and Japan has been severely affected by the State Government’s unprecedented move to dramatically increase coal royalties, according to the Queensland Resources Council.

Chief executive Ian Macfarlane was commenting after the Minerals Week of speech by Japanese Ambassador to Australia Shingo Yamagami.

“In his speech, the Ambassador again emphasised there had been no consultation with any of the Japanese companies or officials or with industry, and this has created a significant fracture in that trusting relationship,” he said.

“This situation has the potential to affect jobs and investment in Queensland.

“We need international investors like Japan to get involved in Queensland projects like rare earths and hydrogen, but the Ambassador made it clear Japan is rethinking its investment plans for Queensland, firstly based on the way they’ve been treated, and secondly because the government has changed the goal posts on them without any consultation, which has affected their return on investment.”

This year’s State Budget heralded three new progressive tiers introduced in July. The new royalty rates are 20 per cent for coal prices above $175; 30 per cent for prices above $225, and a 40 per cent tier that applies when prices exceed $300.

A spokesman for Queensland Treasurer Cameron Dick said the Ambassador’s comments this week were consistent with his earlier remarks.

“Queensland has a long and mutually respectful trade relationship with Japan,” the spokesman said.

“That relationship will continue to develop into the future, as we export everything from steelmaking coal and gas to beef and peanuts, and develop new export markets, especially in the area of green hydrogen.

“The Treasurer has met with the Japanese Ambassador about the Government’s new bipartisan progressive coal royalties regime.

“The Treasurer has also met directly with the Japanese steelmakers who buy our coal.

“We are confident that Japan will continue to be a long-term customer for Queensland metallurgical coal, as well as other traditional and emerging Queensland exports.”