Diversified miner BHP asset president for the BHP Mitsubishi Alliance (BMA) Adam Lancey has raised concerns over the state’s ability to attract capital investment in its coal sector, urging for more predictable policies and improved government engagement to keep Queensland competitive on the global stage.

Speaking at the Queensland Resources Media Club this week, Lancey emphasised that despite the strong long-term outlook for Queensland's high-quality steelmaking coal, sudden policy changes and fiscal instability were hindering the state’s attractiveness to investors.

“Capital is global. It will flow to where the risk-returns ratio is most attractive,” he said, pointing to recent concerns raised by Nippon Steel, a key customer of Queensland’s coal, over the state’s coal royalty rate increases.

Nippon Steel, in a move to secure its own supply, has invested directly in the Blackwater coal mine, highlighting investor uncertainty about the long-term future of the sector in Queensland.

Lancey underscored the need for faster permitting and a competitive industrial relations system to ensure productivity and job creation, while also stressing the importance of consistent government policies that provided a stable investment environment.

“Predictability and reduced business risk [are key]. Under those conditions, capital will flow,” he said, urging the government to engage more constructively with the mining sector on policy decisions.

Lancey pointed to the state’s increased tax burden, with BMA facing an adjusted effective tax rate of 58.3% following recent changes.

Over the last two years, more than A$25-billion was paid in coal royalties in Queensland. After the changes the government introduced, an additional A$9.4-billion dollars has been collected from the coal industry. 

The increased tax burden has forced BHP to consider investment opportunities in other Australian states and internationally, he said.

Lancey praised the New South Wales government’s approach to coal royalties, which involved more in-depth consultation with stakeholders. “Being on the ground with the NSW team I was part of these discussions where the engagement was respectful, with a focus on understanding, collaboration and delivering a mutually beneficial outcome. Working together, we struck a balance between public needs and what was required to keep industry and New South Wales competitive.”

He also highlighted the slowdown in Queensland's mining approval processes, noting that securing mining extensions now took more than two-and-a-half years compared to 18 months in 2016. He urged the government to streamline these processes, following examples set by countries like Canada.

“Streamlining approvals and permitting – without reducing standards – for new or existing projects will create jobs and opportunities including for small, local and Indigenous businesses.”

Despite these challenges, the BHP executive reaffirmed the strong demand outlook for Queensland’s steelmaking coal, with growth driven by markets such as India and Southeast Asia. He highlighted the sector's critical role in supporting global decarbonisation efforts, providing the steel required for renewable-energy infrastructure.

“The opportunity is large to deliver for economies, societies and communities,” Lancey said, but stressed that stable policies and practical frameworks were needed to attract the resources investment.