PERTH (miningweekly.com) – The Queensland government on Tuesday allocated A$450-million of its state Budget to the development of natural resources and mines.

Treasurer Tim Nicholls said the Queensland government viewed agriculture and resources as a vital part of the state’s four-pillar economy.

Natural Resources and Mines Minister Andrew Cripps reported funds had been allocated to natural resources groups for investment in improving, restoring and protecting land, waterways and the Great Barrier Reef.

“We are continuing to work to strike a balance between economic development and the responsible management of our land, water and environmental values,” Cripps said.

“Through this Budget, we have invested A$16-million to fund Queensland’s 14 regional Natural Resource Management bodies to protect and preserve our precious land, water and reef resources.”

The 2014/15 Budget also included A$3.8-million for the coal seam gas (CSG) Compliance Unit to further boost compliance monitoring of Queensland’s CSG industry and community engagement, A$5-million to expand the purpose-built Zillmere Core Library site to preserve core rock samples acquired from company and government exploration drilling, and A$6-million for the Abandoned Mines Land Programme to manage legacy remediation and environmental issues at abandoned mine sites on state land.

“Today’s budget delivers on the government’s commitment to grow a four-pillar economy by driving investment, growth and jobs in our agricultural and resources sectors,” Cripps said.

The Queensland Resources Council (QRC) has welcomed the state government’s plans to repair the Budget, saying it made the right call to resist the lure of increased resources royalties.

“Increasing resources royalties to improve the budget bottom line ignores the tough economic conditions and outlook confronting the sector. The coal industry has shed more than 8 000 jobs in Queensland in the face of some of the most challenging business conditions in decades,” said QRC CEO Michael Roche.

“Despite vigorous cost cutting, 25% of coal currently produced in Queensland is being done so at a loss, including half of all thermal coal production. Some of these mines are staying open only because production is preferable to closing operations locked into transport costs levied on a take-or-pay basis.”

However, Roche added that with one out of every 10 t of coal currently produced in Queensland in the red to the tune of more than A$14/t, some mines were at extreme risk of shutdown.

“If that happens, the Queensland economy could lose up to A$1.8-billion in spending with obvious consequences for some 22 000 jobs.”

Roche further welcomed the state government’s plans to divest some of its assets, including port, rail, water pipeline and electricity assets, in order to reduce state debt, but warned that such a sale had to be accompanied by a suite of “appropriate” commercial and regulatory protections for the user industries.

To address its accumulated $80-billion debt, Nicholls announced a plan to sell assets, which would reduce the state’s debt by between $25-billion and $55-billion.