QCoal closes Cook Colliery underground unit costing 80 jobs as costs soar

QCoal's Cook Colliery mine, which has never turned a profit despite paying $25m in state royalties, forcing the closure of an underground unit and putting 80 staff out of work.

More than a 1000 jobs have been lost this week in the Queensland coal sector.

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 what the company- owned by billionaire Chris Wallin – said was a “measured reaction” to market pressures it will close one of its two underground units at its Cook Colliery near Blackwater.

The announcement comes as almost 1000 jobs have been lost this week in the Queensland coal sector with Anglo American Australia and BHP making cuts and there are more expected.

Cook Colliery is operated by Core Crew on behalf of QCoal and employs about 170

workers.

Core Crew said that consultation would begin with the Cook Colliery workforce today on the future which may result in redundancies and changes to existing positions and roles. It is expected to take about two weeks.

The mine was purchased by QCoal in 2020 and reopened in 2022.

Cook Colliery has contributed $25m in royalties to the Queensland Government since its

March 2022 reopening despite never making a profit.

More than a 1000 jobs have been lost in the Queensland coal sector this week.

“Unfortunately Cook Colliery has been affected by high production costs, high taxes and royalties and low coal prices and its ongoing operation at its current levels is unsustainable,” a QCoal spokesman said on Friday.

On Thursday Anglo American confirmed 150 redundancies and on Wednesday BHP Mitsubishi Alliance said it would cut 750 jobs from across its Queensland business, put the South Saraji mine into “care and maintenance” mode from November, and consider the future of a Mackay training academy.

Bowen Coking Coal executive chairman Nick Jorss, whose company went into receivership over a month ago, said 300 jobs were gone after administrators took over while another 200 remain on the site of its Burton mine.

He said Queensland miners were “bleeding cash”.

Mr Jorss said BMA, Anglo-American, Stanmore Resources, Peabody Energy, Coronado Global Resources have posted cash negative or loss making results in the past six months.

“Combined there listed miners produce nearly half of the state’s total coking coal exports but they are certainly divesting,” he said.

“We don’t have data for the unlisted miners but anecdotally it’s fair to assume that very few coal mines in Queensland are making money.

“Coking coal prices at the moment are historically pretty good but but costs have gone up and the royalties overlay the costs.

“Mr Jorss said unlisted and listed miners were feeling the squeeze. “Combined the listed miners produce nearly half of the state’s total coking coal exports but they are certainly divesting,” he said.

He said the numbers from BHP’s FY25 results told a stark story.

In Western Australia, iron ore royalties made up about about 7 per cent of revenue and 13 per cent of profit but in Queensland BMA coal royalties it was 28 per cent of revenue and 962 per cent of profit.

Originally published as QCoal closes Cook Colliery underground unit costing 80 jobs as costs soar