BHP slams coal royalties as mine closure and more job cuts loom

BHP has slammed Queensland's coal royalties as “unsustainable” as thousands of mining supplies jobs face the axe, and it puts one of its Bowen Basin coal mines into care and maintenance.

Global miner BHP has confirmed it will place one of its Bowen Basin’s coal mines into “care and maintenance”.

Global miner BHP has blasted the controversial Queensland coal royalties scheme as “unsustainable” as a new industry lobby group launching a petition warning that thousands of mine suppliers jobs could be lost.

BHP’s Q1 FY26 Operational Review released on Tuesday confirmed that it will put one of is mines into “care and maintenance” because of the impact of the revenue based royalties regime.

In September the company announced it would cut about 750 jobs across its Queensland coal operations, primarily corporate and support roles.

“Due to market conditions and the unsustainable impact of the Queensland Government’s coal royalties on business returns, Saraji South, part of the Saraji mine complex, will be placed into a period of care and maintenance from November 2025,” the company said in its market update.

Operations at the Caval Ridge coking coal mine in Queensland, owned by the BHP Mitsubishi Alliance (BMA).

BHP’s market update comes as the just launched Resource Industry Network petition calling for a coal royalties review will pass 1000 signatures.

The RIN petition has been sent to thousands of mine suppliers throughout Central Queensland and its campaign material will soon be displayed throughout the regions businesses and mine sites.

RIN called for “regions before royalties”.

“Many small businesses, mining towns, and regional communities are being hit hard by the world’s highest coal royalties. It means fewer regional jobs, struggling small businesses, and services under pressure,” the organisation said.

“This is not just another cycle – it’s the future of our towns, our people, and our industries.

We need a fair and competitive royalty rate that secures jobs, investment, and prosperity in regional Queensland.”

BHP Australia says more jobs will be cut from mines in Queensland as it puts the Saraji South Mine into a period of care and maintenance.

In the last month Anglo American cut almost 200 positions at its Grosvenor mine and Brisbane offices. Private Queensland miner QCoal will close down one of its underground units in the Bowen Basin, putting about 80 miners out of work because of high costs including the state government’s controversial royalties scheme.

In July administrators moved in on Bowen Coking Coal which operates the Burton mine and at least 300 jobs have been lost.

In its review of its steelmaking coal operations BHP said production had increased by 8 per cent due to higher underground production at its Broadmeadow mine and increased stripping.

Production guidance for FY26 remains unchanged at between 18 million tonnes and 20 million tonnes.