From the SMH:
Queensland Resources Council boss Michael Roche told Fairfax Media…
“Some miners have put to me that if there was to be unexpected negative moves by a new government, they may find that head office decides that they should opt for the certainty of the cost of a shutdown, rather than the uncertainty of staying in operation,” Mr Roche said.
Mr Roche said about half of Queensland coal was being produced at a loss, including about 10 per cent at losses greater than $14 a tonne.
“At the moment it is very hard for them [the miners] to convince head office to tip in capital, or essentially to under-write their losses. So the last thing we need are policy changes that tip the balance on the preparedness of the resource company head offices to keep tipping in the capital to sustain these operations.”
It must be “rammed home” early on in industry discussions with the incoming government that many of Queensland’s producers are in survival mode and can’t afford additional pressures, he said.
It must be “rammed home” that loss making coal mines must be kept in operation, despite the massive over-investment, huge glut, as well as the sun setting on the industry globally. Say what?
This really is an idiotic statement. Public support for QLD coal mines that are uneconomic will only push down prices further, resulting in other state coal mine closures and job losses.
Good on the Labor opposition for canning Comrade Campbell’s ludicrous support for the Adani coal quango. They should stick with similar policy across the board.
