Queensland has slipped behind both South Australia and Western Australia as one of the world's most attractive destinations for mining investment, according to a newly released global mining survey. The findings have reignited debate over the state's mining policies, particularly its controversial coal royalty regime introduced in 2022. The annual Fraser Institute mining investment survey ranked South Australia as the highest-performing Australian jurisdiction, placing fourth globally, while Western Australia secured sixth place.
Queensland ranked 13th, remaining among the world's leading mining regions but trailing its interstate competitors. The rankings assess both geological potential and government policy settings that influence investor confidence. Industry leaders argue Queensland's decline is largely linked to its coal royalty structure, which imposes some of the highest effective royalty rates in the world.
Mining companies have repeatedly warned that elevated taxes reduce competitiveness and discourage future investment, particularly when companies can choose to invest in alternative jurisdictions with lower operating costs and more predictable policy environments. The Queensland Resources Council and other industry groups have expressed concern that the state's current approach could have long-term consequences for employment, regional economies and future project development. According to industry figures, several mining companies have either scaled back operations, delayed investments or entered financial difficulties since the royalty changes were implemented.
Mining employment has also reportedly fallen significantly in recent years, adding to concerns about the sector's future direction. Despite these challenges, Queensland remains a major force in Australia's resources sector. The state continues to benefit from substantial coal, critical minerals and emerging energy resources projects.
Large-scale developments such as the Copper String transmission project and critical minerals processing initiatives in North Queensland are expected to support future growth and diversification within the mining industry. South Australia's strong performance was driven by its highly rated geological potential, supportive exploration environment and internationally recognised geological database. Western Australia also maintained a strong position due to its established mining infrastructure, extensive resource base and reputation for regulatory stability.
Queensland Premier David Crisafulli has acknowledged industry concerns but has so far indicated that major changes to the royalty system are unlikely in the immediate future, with existing revenue projections remaining a key component of the state's budget planning. Nevertheless, mining industry representatives continue to call for an independent review of the royalty framework to improve Queensland's competitiveness and attract new investment. The latest rankings highlight the increasingly competitive nature of global mining investment, where government policy, taxation settings and regulatory certainty play a critical role alongside resource potential.
While Queensland remains an important mining powerhouse, the survey suggests that maintaining its long-term position will require careful balancing of revenue generation with policies that encourage investment, job creation and sustainable growth across regional communities.
