The US-based company, which also produces coal from American mines, has been basking in an environment of record prices for coal and reported that it had generated more than $US1 billion in the June quarter alone and almost $US2 billion for the half year, a 147 per cent increase on the previous year.

Coronado managing director Gerry Spindler said the implied royalty rate for Curragh was now 20 per cent, up from 12 per cent previously.

“While the sector has benefitted from the recent strong pricing cycle, royalties paid to the State Government under the now-legacy royalty arrangement have also been highly elevated,” Spindler said.

“Companies will always consider investment decisions on a case-by-case basis and the imposition of additional royalties on the coal industry in Queensland puts it at a competitive disadvantage compared to lower-cost jurisdictions within Australia and overseas.

“Coronado continues t be a significant employer of choice in Queensland and already makes substantial economic contributions to both Federal and State governments and the community.

“Coronado estimates the second half of 2022 impact on earnings from the policy change would be approximately $US50 million post-tax, based on current spot prices.”

The Government increased the royalty rate to reap some of the benefit from the record prices being earned by companies, but has faced a serious backlash from the industry, including BHP, which said it was now reassessing the economics and mine lives of its Queensland mines with the BMA joint venture.

Spindler said the prices for metallurgical coal were starting to fall as more supply came on the global growth slowed. Hosever, it still expected strong prices above historical averages for the rest of the year.

Because it has a mine in the US, Coronado is still able to market its coal into China.