The coal sector paid $425 million in coal royalties for the first nine months of the 2001-02 financial year, an increase of $126 million, or 42%, over the same period a year ago, the QMC said.

The figures were collected by the QMC on behalf of coal mining companies.

"Included in the figures was a sum of $15 million from the new "super" royalty introduced by the [state] government from January 1 this year and which effectively taxes rail freight charges," the council said.

QMC chief executive Michael Pinnock said the first quarter payment indicated the increased royalty impost would cost coal companies $60 million in a full year and impact on their profitability.