- 22 Jun 2022
- ICICIdirect Research
QUEENSLAND MOVE TO INTRODUCE NEW UPPER TIERS TO COAL ROYALTY REGIME LIKELY TO POSITIVELY IMPACT COAL INDIA
COALINDIA - 387 Change: 2.10 (0.55 %)News: Australia's Queensland government has introduced new upper tiers to its coal royalty regime to earn additional revenue from higher prices from 1 July, 2022. The Australian government has set new progressive rates, effective July 1, at a 20% royalty on coal prices over A$ 175 a tonne, 30% for prices above A$ 225/tonne and 40% for prices over A$300/tonne. Previously the top tier was a 15% royalty on prices over A$ 150/tonne
Views: In FY22, ~17% of coal india’s offtake was done through the e-auction route. If the Queensland miners decide to pass through the additional royalty hike, it is likely to have a positive rub-off on Coal India’s e-auction realisations. Whether or not Queensland miners pass through this royalty hike would remain a key monitorable, going forward
Impact: Positive