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Tuesday’s Final Word – HotAir
Mining giant BHP has blamed a ‘coal crisis’ for the axing of 750 jobs in Queensland.
Workers were informed of the cuts on Wednesday morning by BHP Mitsubishi Alliance (BMA).
‘As joint owners of BMA, BHP and Mitsubishi Development do not want to see operations paused or jobs lost,’ Asset President Adam Lancey said.
‘But these are necessary decisions in the face of the combined impact of the Queensland Government’s unsustainable coal royalties and market conditions.
‘The simple fact is the Queensland coal industry is approaching a crisis point. This is now having real impacts on regional jobs, communities and small businesses.
‘The uncertainty this creates for our people and our communities is not taken lightly, and we will do everything we can to support them.’
Saraji South mine, which is 250km northwest of Rockhampton, will be placed into a period of care and maintenance from November 2025.
The mining company is also reviewing the apprenticeship centre BHP FutureFit Academy in Mackay. This will not impact the Western Australian centre.
Mining giant BHP announced that it was cutting 750 jobs from its workforce in Queensland
The company has blamed the Queensland Government’s ‘unsustainable coal royalties and market conditions’ as the reason why the industry has reached a ‘crisis point’
BMA is the largest private sector employer in central Queensland and in the financial year to 2025, the company paid more than $6.4billion to suppliers.
During that period, it is understood to have had an effective tax and royalty rate of 67 per cent.
‘While medium-term demand for BMA’s premium hard coking coal is strong, maintaining operations in lower margin areas of BMA’s mine footprint is not sustainable under current conditions in Queensland,’ a company statement said.
Queensland Treasurer and Energy Minister David Janetzki told Daily Mail the news of the job losses was disappointing but added the government is focused on improving the industry.
‘My heart goes out to those affected workers and their families together with the communities impacted by BHP’s decision,’ he said.
‘While this is a disappointing commercial decision by a multi-national mining giant that just four weeks ago posted a $16billion profit, today, the Crisafulli Government remains focused on the workers and Queensland communities affected by BHP’s decision.
‘The Crisafulli Government is providing certainty for the coal industry in Queensland with faster decisions, streamlined approvals and a stable royalty regime, exactly as we committed before the election – there will be no changes to Queensland’s royalty regime.
‘While the former Labor Government demonised and destroyed the sector with Labor’s trademark uncertainty and chaos, the Crisafulli Government is looking forward to some exciting investment announcements in Queensland mining in the near future.’
In July 2024, BHP suspended its nickel operations in Western Australia, but pledged to protect the livelihoods of the division’s 2,500-strong workforce (stock image)
In July 2024, BHP suspended its vast nickel operations in Western Australia, but has pledged to protect the livelihoods of the division’s 2,500-strong workforce.
It cited a global oversupply of nickel for the temporary shutdown.
In the financial year to June 30, 2024, BHP reported an underlying loss of about $450m at its nickel division.
The company will suspend operations until February 2027.
