BHP confirms cost-saving measures coming to Central Queensland coal mines

Rumours of job cuts are swirling around the Bowen Basin and mining behemoth BHP has confirmed it will “reduce costs” across its business in response to coal royalties and Same Job Same Pay.

The engineering team at Peak Downs delivered a rail and road crossing to support the relocation of Shovel SHE36 from the north to south pits. BHP is a major coal producer in Central Queensland. Picture: BHP

Hundreds of miners could lose work in coal-rich Central Queensland after mining behemoth BHP confirmed it was looking to “reduce costs” across its business.

Confusion is already circulating the giant’s Bowen Basin mine sites after posts from WordInThePit, a popular Facebook page that tracks the mining sector, alleged 1300 job cuts were imminent, including 300 at the Peak Downs mine.

One BHP worker, who asked to remain anonymous, said she was “shocked” by the rumours.

“Everyone is just wondering where it is coming from,” she said.

“Considering there are jobs galore, it’s a truckies’ market.

“I have five or six people calling me a week (offering a job).

“So yeah it has shocked me.”

A company spokesman has denied any immediate cuts and said the Facebook posts were “not accurate”.

But he added pressures from coal royalties, inflation and Same Job Same Pay legislation would force the company to cut costs.

“We are ensuring that we manage our business prudently and reduce costs across the business wherever we can safely do so,” he said.

In Queensland, the company operates the Daunia, Blackwater, Broadmeadow, Goonyella, Caval Ridge, Peak Downs and Saraji mines with a 10,000-strong workforce.

BHP CEO Mike Henry. Photo: Aaron Francis / BHP

The state government’s coal royalty regime dramatically escalated rates on Queensland’s coal operations, with companies now shelling out 40 cents on the dollar when prices go above $300 per tonne.

BHP CEO Mike Henry said Same Job Same Pay would add some $1.3bn to its yearly wages bill.

The industrial reform package going through federal parliament would look to end discrepancies in pay between labour-hire and direct-hire workers on mine sites.

Mining and Energy Union Queensland district president Stephen Smyth said BHP needed to engage with the union before implementing major workplace changes.

“I think at this point it is a rumour,” he said.

“But who knows what they are going to do.

“They (coal companies) are that ruthless, to make a point, they would lay off workers over Same Job Same Pay,” he said.

The $225b behemoth has been outspoken in its opposition to the new royalties following their snap introduction in June 2022, warning bluntly it will shut down any new investment into Central Queensland.

It also said its decision to offload its Blackwater and Daunia mines was driven in part by royalties.

Treasurer Cameron Dick’s 2023-24 budget revealed a $15.3bn revenue haul from royalties.

“BHP is making extraordinary profits from their Queensland coal mines,” Mr Dick said this week.

“Their employees deserve more from BHP than this false rumour mongering”.