Australia is one of the largest providers of export thermal coal. The country has recently seen significant changes in policy with a range of upcoming projects to bring further supplies to the market. AME expects that Australian thermal coal supply will grow from 196Mt to 234Mt by 2026.
NSW Updated Royalties
In September 2023, the NSW government announced
plans to modernise its royalty scheme. This is a very late follow up from
Queensland’s updated royalty scheme from the September quarter of 2022.
The NSW
royalty rates will be updated from July 2024 (the start of the new financial
year), with an increase of 2.6% on the taxes for all mine types. The government
projects the increase will return more than A$2.7bn to state coffers within
four years of being implemented.
Mining companies with major stakes in NSW
thermal coal mines, including BHP, Glencore, and Whitehaven Coal say the
decision has affected confidence in the industry, discouraging new growth and
placing a burden on those already established.