The BHP Mitsubishi Alliance (BMA) says royalties are having an "unsustainable impact" on business returns
One of Australia’s largest coal producers, BHP Mitsubishi Alliance (BMA), has announced it will cut about 750 jobs in its Queensland coal operations, blaming the "unsustainable impact" of State Government royalties.
The company will also shutter its Saraji South mine, about 245 km southwest of Mackay, and the BHP FutureFit Academy in Mackay, which provides skills training to work in the industry, will also undergo a review.
In a statement, the company said, “due to the unsustainable impact of the Queensland Government’s coal royalties on business returns,” approximately 750 roles across Queensland would be removed and low-margin operations suspended.
But the Mining and Energy Union (MEU) accused the company of “sulking” because they had to share some of these windfall profits with Queenslanders.
Speaking to workers in a video on Wednesday, BMA Asset President Adam Lancey said the company had paid 67 cents in every dollar in taxes and royalties in the last financial year and this was “not sustainable.”
“No one wants to see jobs lost or operations paused. These are necessary decisions in the face of the Queensland Government's unsustainable coal royalties and market conditions,” he said.
“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.”
Union accuses BMA of 'sulking"
In a statement, MEU Queensland President Mitch Hughes said blaming job cut decisions on Queensland’s royalty regime was disingenuous – with the higher rates of royalties only kicking in when prices were very high.
“BHP should stop using coal workers and communities as pawns in its fight with the Queensland Government over royalties,” Hughes said.
“It’s very disappointing to see BHP close a mine as soon as coal prices come off the boil.
"Even with higher royalties, BHP profited immensely from the coal price spike of 2022-2023, which saw coking coal spot prices peak at over $900 a tonne. BHP is sulking that they had to share some of these windfall profits with Queenslanders.”
The union said it understood the 750 job losses would mainly impact corporate and support roles across BHP’s Queensland business, while 72 coal production jobs would go at the Saraji South mine.
Queensland Deputy Premier Jarrod Bleijie accused BMA of being “un-Australian” for considering closing the Mackay training facility.
“They should keep investing in the future of young people who want a job in a mine,” he was quoted in The Australian Financial Review.
It is understood current FutureFit Mackay students will be able to complete their training and the review will not impact the FutureFit Academy in Western Australia.
