At $5.76 is WHC below intrinsic value?, page-19

QLD royalties go as high as 50% once coal price reaches a certain point.... but can't recall the level offhand.

Yes, citizens do deserve to get royalties from natural resources. So the debate is about the level. But remember royalties are taken as the coal is dug up, irrespective of whether the coal is sold at a profit or loss. Further along the line mines have to pay several other govt taxes.

The biggest problem in Australian mining is the high cost of employing people. Nobody expects us to work for Indonesian wages... but we can't ignore our biggest and most recent coal competitor.

Nippon Steel et al openly said they are afraid our mines not supply them... hence their purchase of 30%.
Reducing cost of production would require a reduction in wages across the board. Can anyone foresee that happening? It would probably take a couple of mines to go into liquidation before changes are possible. The future in this industry is indeed murky with plenty uncertainty. This in turn causes the SP to weaken.