One of Queensland’s largest coal miners is set to axe an estimated 750 jobs across the industry, blaming a royalties “crisis point” imposed by the state government.
BHP Mitsubishi Alliance (BMA) announced to its workers on Wednesday morning it will cut approximately 750 jobs across its Queensland operation, blaming the impact of high “unsustainable” royalties imposed by the Crisafulli government.
BMA asset president Adam Lancey addressed workers in a video seen by 7NEWS, telling them “the simple fact is the Queensland coal industry is approaching a crisis point”.
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“The uncertainty this creates for our people and our communities is not taken lightly, and we will do everything we can to support them.”
The head of the mining giant said they did not want to see jobs lost, but it was a “necessary decision” caused by the “combined impact of the Queensland government’s unsustainable coal royalties and market conditions”.
“This is now having real impacts on regional jobs, communities and small businesses,” he said
Lancey claimed BMA paid 67c in every dollar to taxes and royalties and returned just 1 per cent to the business.
He said the company paid the Queensland government “about eight times in coal royalties what we made in profit”.
“Numbers like these are not sustainable, and we’ve had to make difficult decisions,” Lancey said.
Work at BMA’s South Saraji mine near Dysart, north of Rockhampton, will be halted, and the mine deactivated, from November 2025.
There are rumblings the company is also reviewing its BHP “FutureFit” Academy — a paid training program for employees new to the mining industry — based in Mackay.
Deputy Premier Jarrod Bleijie said the Queensland government was “not at war” with the mining sector and it was “unAustralian” to close down the Mackay academy.
“We are doing everything we can as a government to make sure that Queensland is open for business, particularly in the mining sector,” he said.
“They have made billions of dollars from the resources owned by Queensland taxpayers and Queenslanders, and they should keep investing in the future of young people who want a job in a mine or a resource sector in Queensland.”
Bleijie said it should be “no surprise” to BHP that his government stuck by its election commitment not to adjust the royalty regimen.
“What I would simply say to BHP is they have an obligation to protect and do everything they can for the 750 workers who they have notified (and) who will be impacted by the decision to restructure,” he said.
The Mining and Energy Union said the announcement had come as a “total shock” to employees.
“For (BMA) to use the workforce as a pawn in their games against the government is just shameful behaviour,” a spokesperson said.
Treasurer and Energy Minister David Janetzki said his “heart goes out” to affected workers and their families impacted by BHP’s decision.
“While this is a disappointing commercial decision by a multi-national mining giant that, just four weeks ago, posted a $16 billion profit, today the Crisafulli Government remains focused on the workers and Queensland communities affected by BHP’s decision,” he said.
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