NSW Treasurer Daniel Mookhey says a new $2.7 billion plan to raise coal royalties in the state will not cost jobs or put brakes on investment.
“This is a fair outcome for the people of NSW. The old system is out of date. The market has moved on. That’s why we are modernising the state’s coal royalties,” the treasurer said.From July 1, 2024, the new rate for open cut mining will be 10.8 per cent, while the rate for underground mining will be 9.8 per cent and the rate for deep underground mining will be 8.8 per cent. The rates are currently 8.2 per cent, 7.2 per cent and 6.2 per cent respectively.
While stakeholders fear the hike could prompt investor sentiment to cool or miners to cancel new projects – as “The feedback we have received from the companies themselves is that this is a manageable change. And we will be holding companies to account for how they respond.”in its 2022 budget triggered BHP and Rio Tinto to vow not to make new investments in the state.
The funds raised will also be directed to new renewable energy infrastructure, which falls under the government’s banner of essential services.
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