BHP’s direct message to Qld government in slashing 750 jobs

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BHP has revealed it will cut 750 jobs from its Queensland operations, with the global mining giant blaming the state government’s coal royalties regime for edging the market towards “crisis point”.

The world’s biggest mining company has been vocal in lobbying Queensland to ditch its tax settings on the industry, which was overhauled by the former Labor government in 2022.

The current Crisafulli government has repeatedly said it will not amend the royalties regime, which has faced intense and continued scrutiny from the coal industry.

BHP has announced it will cut 750 jobs this year.

BHP had warned the royalties hike had deteriorated its operational prospects in Queensland and on Wednesday morning told workers and the market it was suspending low-margin operations.

The company’s Mitsubishi Alliance (BMA) in Central Queensland will cut 750 jobs with its Saraji South mine in the Bowen Basin placed into a period of care and maintenance from November.

In a pointed message to the Queensland government, BHP said it would also review its FutureFit Academy in Mackay but would continue the academy’s WA division.

“BHP and Mitsubishi Development do not want to see operations paused or jobs lost, but these are necessary decisions in the face of the combined impact of the Queensland government’s unsustainable coal royalties and market conditions,” BMA asset president Adam Lancey said in a statement on Wednesday morning.

“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.”

Between 2022-23 and 2023-24, Queensland pocketed $31 billion from coal royalties following the overhaul, but the revenue has steadily declined in recent years.

Queensland state budget in June the state had forecast to receive $6.2 billion this financial year before gradually decreasing to $5.3 billion in 2028-29 – a total of $30.2 billion over four years.

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