The Queensland Resources Council, whose members include major miners such as Rio Tinto, Vale, BHP Billiton, Xstrata and Anglo American, has warned about further job losses and mine closures, following the Queensland state government's decision to increase royalties from 10 percent to 15 percent or every metric ton of coal sold for between $100 and $150 from the beginning of October.
Queensland Resources Council chief executive Michael Roche said that, apart from closures and job losses, many major new coal projects planned in Queensland will be put on hold or end up with competitors due to royalty hikes.
As SteelOrbis previously reported, earlier this week BHP Billiton and Xstrata announced that they are reducing their workforces due to the current economic environment of falling prices, high costs and a strong Australian dollar.