TRAD OFFERS MINERS ROYALTY FREEZE FOR $70 MILLION
RESOURCE companies have been told to cough up $70 million to a “voluntary” infrastructure fund or risk years of uncertainty over the threat of royalty hikes.
Miners are expected to give their answer today after Treasurer Jackie Trad yesterday laid out her offer of a threeyear rate freeze if they agreed to help fill a $100 million community infrastructure fund.
The Federal Government accused Ms Trad of “highway robbery”, but she denied she was forcing miners to comply by holding the threat of higher taxes over them.
Ms Trad said the Government would chip in $30 million and there would be no royalties increase for one year, regardless of whether companies agreed.
But if they turned down the offer, the issue of royalty increases would be revisited next year and every year, she said.
“There will be no coal royalty increases in this year’s Budget, but if there is an agreement from the mining companies around this community infrastructure fund, then we will make an agreement to freeze royalties for three years,” she said.
It’s understood the offer made by Ms Trad to coal and minerals companies did not first go to Cabinet.
Federal Resources Minister Matt Canavan described the levy as “highway robbery” by a bankrupt Labor Government.
“The Government has the gall to say it is friends with the resources sector,” he said.
“Well, I don’t know about Jackie, but I don’t tell me friends ‘buy this round of beer or I might not take your call tomorrow’.”
The companies that attended the meeting, including BMA, Anglo American, Rio Tinto, Peabody, Glencore and Jellinbah, are yet to speak publicly. Queensland Resources Council chief executive Ian Macfarlane said he had to consult with 150 resource companies today before the industry would give its answer.