Mining Royalties to be Discussed at AGM

Council will put forward a motion at this year’s Local Government Association of Queensland (LGAQ) Annual General Meeting, asking for mining royalties to go towards supporting mining communities.

Mayor Peta MacRae presented a motion at Council’s July Ordinary Meeting on July 24, calling on Council to submit the motion at the AGM, where it will be discussed and debated by Councils from across Queensland. The AGM will be held from October 21-23 in Brisbane.

The motion asks for the State Government to work in conjunction with the LGAQ and resources-reliant councils across Queensland to create a dedicated funding program, enabling mining royalties to be set aside and used to support communities – through economic transition and potential diversification opportunities – when their mines close.

“Queensland Treasury collects royalties from all mining companies in Queensland. These royalties assist the State Government in providing a large range of services to the people of Queensland,” Cr MacRae said.

“Over the years, billions of dollars in mining royalties have been filling the Treasury coffers.

“What we are asking for is that a portion of those be reserved for when times become desperate and a closure wreaks havoc on the local economy and threatens the survival of the business community.

“We find ourselves in a situation where the mine in our area has paid, over its history, millions of dollars in royalties to the State Government. And now we need to find some way of funding an economic transition – and many communities will be going through the same thing – as we move to a greener society.”

The Mount Isa copper mine, and associated copper-processing facilities (excluding copper smelting), will be shut down in 2025, with up to 1200 workers being made redundant and a $150 million reduction in direct wages.

“This will have huge flow-on effects for the mine’s supply chain, which will include suppliers in town and the wider region and the small businesses that operate in the town,” Cr MacRae said.

“Mount Isa has received only $20 million in support from the State Government for the upcoming copper mine closure. This is not sufficient to recover from the loss of the mine, and the wages and business activity that it produces.”