home

Significant Increase to Coal Royalty Rate in Queensland, Australia - Anglo Pacific Group

Anglo Pacific Group PLC (LSE: APF, TSX: APY), notes the proposed addition of three new progressive royalty tiers announced by the Queensland Government on 21 June 2022. The new higher royalty tiers are expected to apply to the royalty the Group receives from the Kestrel mine and are intended to take effect from 1 July 2022.

The previous amendment to the Queensland coal royalty regime in 2012, saw a significant increase to the weighted average royalty rate being applied to the Group’s Kestrel royalty interest. This amendment is expected to have the same impact from the effective date.

The current and proposed statutory royalty rate tiers are as follows:

Coal Price

 (A$ per tonne)

Current royalty rate Proposed royalty rate

(from 1 July 2022)

<100 7% 7%
>100 and up to 150 12.5% 12.5%
>150 and up to 175 15% 15%
>175 and up to 225 15% 20%
 >225 and up to 300 15% 30%
> 300 15% 40%

More information can be found on the royalty rates section of the website of the Queensland Government Treasury Department.

Marc Bishop Lafleche, Chief Executive Officer of the Company, commented:

“The proposed increase to the Queensland royalty regime has the potential, based on current consensus metallurgical coal price forecasts for H2 22 of approx. US$380/t (A$545/t), to increase our revenue from the Kestrel royalty during the same period by approximately 75%. This should significantly accelerate our ability to recycle capital towards funding accretive acquisitions that further enhance our exposure to future facing commodities.”

For a full copy of this release please click here