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Highlights
- Queensland budget leans heavily on coal exports.
- Resources royalty revenue projected to decline by nearly $5 billion.
- Long-term investment stability questioned amid rising operational costs.
As Queensland’s 2025 State Budget rolls out, the Queensland Resources Council (QRC) has expressed growing concern over the government’s strategy of prioritising coal exportation. The approach, according to industry leaders, may pose challenges to the broader resources sector, particularly amid an already volatile global commodities market.
Janette Hewson, CEO of the QRC, highlighted the importance of a more sustainable economic strategy. Rather than relying on coal royalties for short-term fiscal relief, Hewson emphasised the need for policies that foster long-term capital investment. She pointed out that the sector has historically played a crucial role in funding critical public infrastructure and social services across the state.
Despite these contributions, the latest budget shows a dramatic fall in resource royalties—nearly $5 billion lower in the 2025 financial year. As coal prices soften and operational costs continue to rise, miners face growing pressure, with implications that may also extend to ASX200 stocks exposed to Queensland’s resource-heavy economy. Some of the key mining and energy players in the region, such as Whitehaven Coal (ASX:WHC), Stanmore Resources (ASX:SMR), and New Hope Corporation (ASX:NHC), may find their financial outlook shaped by these evolving policy dynamics.
The Queensland Government has flagged plans to further coal export initiatives, including efficiency measures in freight infrastructure to support international trade partnerships. However, the extension of current royalty rates through to 2028-29 has raised red flags for industry stakeholders, particularly given the sector’s dependence on stable and investor-friendly tax conditions.
While some moves—like streamlined approval processes and pro-business rhetoric—have been welcomed, QRC maintains that more supportive policy frameworks are essential to bolster confidence and encourage private investment. The long-term health of Queensland’s resource sector, and by extension many ASX200-listed mining firms, will depend on the government’s ability to balance export ambitions with fiscal foresight and strategic infrastructure planning.
Given coal’s significant economic role—contributing $71.8 billion in 2021–22 and representing 70% of total resource exports—any structural shifts in policy or market demand are likely to reverberate across the ASX landscape.
