Australian coal giant to cut 750 Queensland jobs amid row over mining charges

MINING giant BHP Mitsubishi Alliance (BMA) has announced plans to cut 750 jobs across Queensland and suspend operations at one of its coal mines.

Job losses are expected to largely impact corporate and support staff, while 72 coal production jobs will be affected at the Saraji South hard coking coal mine, according to a union representing coalminers.

BMA, the 50–50 joint venture between Australian mining behemoth BHP and Japanese-owned minerals company Mitsubishi Development, has blamed its decision on what it describes as “unsustainable” coal royalties charged by Queensland authorities. The company’s announcement this week comes after the head of the Queensland government emphasised last month they are “not touching the royalty regime” when asked if he would consider lowering the charges on coal revenues.

Mitch Hughes, Queensland president of the Mining and Energy Union (MEU), described BMA’s behaviour as “shameful”.  

Australia is the world’s largest exporter of coking coal, supplying around 50% of the 331m t produced globally. BMA produced 36m t in 2024–25.

The country is also the world’s largest producer of iron ore, the other key raw material in virgin steelmaking, producing 952.5m t in 2023, almost all of which was exported. By contrast, Australia has a very small steel industry, producing less than 0.3% of global demand.

BMA has long campaigned to reduce Queensland’s coal royalties, although critics argue they have little impact on profit. Hughes accused BMA of “using coal workers and communities as pawns in its fight with the Queensland government over royalties”.

BMA has committed to working with the MEU towards redeployment of staff to other roles where possible.

At the same time, BHP has threatened to close a college in Queensland, announcing a strategic review of the FutureFit Academy in the town of Mackay. Over 2,500 trainees and apprentices have graduated from the college since its launch in 2020. BHP has committed to ensuring the 100 current students complete their training regardless of the outcome of the review.

Queensland deputy premier Jarrod Bleijie described BHP’s decision to launch a strategic review as “un-Australian”. He said: “They have made billions of dollars from the resources owned by Queensland taxpayers…they should keep investing in the future of young people who want a job in a mine or resource sector in Queensland.”

Blame games

BMA’s profit after tax for 2024–25 was US$134m, a sharp decline from US$2bn in 2023–24. Over the same period, BHP’s return on investment in BMA fell from 15% to 1%.

BHP demonstrated its readiness for lay-offs in low-margin divisions last July when it suspended operations across its Western Australia nickel business at the expense of thousands of jobs.

BMA has partly attributed its downturn to Queensland’s coal royalties, which are set at 20% for prices above A$175 (US$116.6) per tonne, 30% above A$225, and 40% above A$300. By comparison, the maximum rates are 10.5% in New South Wales and 7% across the US.

However, critics remain sceptical, noting that BHP has lodged several applications to expand coal mines in Queensland, including two at the Saraji complex. Ellen Roberts, national coordinator at campaign group Lock the Gate Alliance, said: “If royalties really were to blame, BHP would not be trying to build three giant new climate-wrecking coal projects.

“Federal and state governments should not give BHP approval for new coal projects when it is simultaneously mothballing the mines it already operates.”

Mitch Hughes echoed this sentiment, saying that BHP profited “immensely” despite high royalties when coal prices peaked at A$900 per tonne in 2022–23. “BHP is sulking that they had to share some of these windfall profits with Queenslanders,” he said.

Hughes added that the company has “form” in temporarily closing mines in order “to chase high coal prices”, referring to the relaunch of Saraji South in 2020 after an eight-year closure.