The Japanese ambassador’s continued presence in a campaign by the mining lobby against the Queensland government has been labelled as “highly unusual” by a former Australian diplomat.
The Queensland Resource Council launched a $40m marketing campaign targeting the state government’s new coal royalty regime as part of its annual forum in Brisbane on Wednesday.
The forum was snubbed by the premier and her ministers, with Annastacia Palaszczuk saying she was “extremely disappointed” and “angry” at the QRC chief executive, Ian Macfarlane, and his ongoing “attacks on the government”.
Attendees were addressed, however, by the Japanese ambassador, Shingo Yamagami. Yamagami has emerged as a vocal and strident critic of the Palaszczuk government’s decision in June to introduce a tiered royalty rate aimed at cashing in on record coal prices driven by Russia’s invasion of Ukraine.
He warned Japanese companies could reconsider joint ventures in hydrogen and other sectors if the situation was not resolved.
“Japanese coal companies are yet to see any glimmer of hope that the situation will improve,” Yamagami told the lunch.
“Alongside coal, Japanese investment and trade in Australian gas is a cornerstone of our partnership based on trust.”
The address followed similar comments made at the University of Queensland in July, and a Minerals Council of Australia conference in Canberra in September.
Japanese firms such as Mitsui and Mitsubishi have major coal investments in Queensland.
Allan Behm, the director of the international and security affairs program at the Australia Institute, described Yamagami’s forays as “highly unusual”.
“It is unusual for ambassadors to involve themselves in domestic, economic or political conversations,” Behm, a former diplomat who had also worked for former Labor minister Greg Combet and advised Penny Wong, said.
“Normally it’s the practice for diplomats to keep out of the hurly-burly of domestic politics. If you want to convey your concerns or displeasure with a foreign government, you do so privately. That is the nature of the conduct of diplomacy.”
Yamagami told Guardian Australia the Japanese government did not support or oppose any party in any domestic political debate in Australia and that such policy was “entirely up to the Australian people and Australian political leaders”.
“Regarding the Queensland coal royalty, we have been communicating to the relevant authorities the concerns of Japanese businesses operating in Australia to the effect that they were not properly consulted prior to the announcement of the measures, and that the decision could damage the trust in Queensland and beyond as a safe and predictable place to invest,” he said.
The mining lobby has been quick to amplify Yamagami’s concerns, claiming his comments were evidence the royalty hike was a “growing threat to investment and jobs”.
The Queensland government maintains it did consult with industry prior to announcing the royalty hike. A spokesperson for the premier also said Palaszczuk had met with Yamagami, and that the deputy premier and the treasurer had both travelled to Japan this year.
The new tiered coal royalty regime is structured to capture windfall profits and is on track to net the Queensland government up to $6.4bn more this financial year than it would have under the state’s previous royalty regime, according to modelling by the Climate Energy Finance director of consultancy, Tim Buckley.
Buckley said his projections needed to be taken with a degree of caution, given the volatility of commodity prices, but on the current market they showed Queensland securing $15.7bn over the course of the next 12 months compared to roughly $9.3bn under the previous regime.
But Buckley said coalminers would still get 80% of Queensland’s coal export bonanza – up to $62bn in revenue and record profits of more than $30bn before interest and corporate tax. This meant claims by Macfarlane – a former federal Coalition resources minister – that miners would abandon the sector due to the royalty regime was “hot air and bluster”.
The financial analyst also debunked claims by the QRC Queensland that miners were paying the highest royalties in the world, pointing to India – were miners pay an average royalty 33% on all coal revenues compared to the 20% royalty rate he forecast they would pay in Queensland – and to Norway, where the royalty share is even higher.
Instead he described the QRC campaign as a “pre-emptive strike” designed to scare other states and the federal government from following Queensland’s lead.
The Lock the Gate Alliance Queensland coordinator, Ellie Smith, said mining companies, “including companies based in Japan”, had made “a killing off record high coal prices” and described Queensland’s royalty hike as “modest”.
“These are Queensland-owned resources and neither the mining industry nor any foreign government has the right to dictate how much Queensland charges to access them,” she said.
“We bear the brunt of the impacts mining has on our land and water. We suffer the effects of the floods and fires it fuels through its climate impacts. It’s important coal companies – wherever their head office is – pay accordingly.”
The foreign affairs minister, Penny Wong, was approached for comment.
Australian Associated Press contributed to this report
