500 jobs up in the air as Bowen Coking calls in administrators after talks with creditors fail

A Queensland coal mine that opened just two years ago has gone into administration, threatening hundreds of jobs and prompting critics to lash the government’s ‘worst policy’ in the world.

More than 500 jobs are on the line and a major Queensland coal mine could be “paused” after mining company Bowen Coking appointed administrators on Wednesday.

It comes as Queensland slumped in a global mining investment attractiveness report - ranked lower than Namibia, Tanzania and Indonesia - with frustrated critics saying ‘we have some of the best coal in the world and some of the worst government policy in the world”.

Mark Holland and Shaun Fraser of McGrathNicol Restructuring were appointed as voluntary administrators to Bowen Coking after talks with major creditors failed.

McGrathNicol said that although Bowen coking achieved full year 2025 coal production and sales in FY25, depressed metallurgical and thermal coal markets have strained BCB’s liquidity.

McGrathNicol partner and voluntary administrator Mr Holland said they have assumed control of the BCB Group and are continuing to operate on a ‘business as usual’ basis while a sale and recapitalisation process is undertaken.

Coal miner Bowen Coking is in administration.

“This includes working with employees, suppliers and key stakeholders at the Burton Mine Complex located in the Bowen Basin of Queensland, to ensure that operations remain sustainable and continue uninterrupted during the sale and or recapitalisation process,” he said.

Bowen coking operated the Burton mine, near Moranbah, which only opened in 2022.

It was projected to have a 10-year life, producing two million tonnes of coal per annum.

The group said the “very disappointing” decision was made “following the inability” of the company to secure fresh capital or to negotiate alternative commercial arrangements with its two largest creditors, BUMA Australia, the Queensland Revenue Office, and the company’s senior secured lender.

Burton coal mine, QLD. Picture: Google Maps

QRO rejected a July 29 submission by Bowen for a short-term deferral on royalty payments, which triggered the decision.

“The board’s decision also reflects the current challenging environment for the coal industry in Queensland from higher costs, lower global coal prices and higher royalty rates introduced by the Queensland Government in 2022,” the Burton Mine Complex operator said.

The administration comes after the company’s executive chair Nick Jorss warned last month the company had paid almost $120m to the state government in royalties but investors had not seen even a single dollar returned on their $340m investment.

“Bowen is the tip of the iceberg of the pain being felt by central Queensland,’’ Mr Jorss said.

“We’re not the only ones on the edge. Quite a lot of mines in central Queensland are cash negative, meaning a lot of jobs are at risk.

In a statement to the stock exchange in June, the company warned: “If immediate funding efforts are unsuccessful and/or coal market pricing dynamics do not improve, Bowen may seek to temporarily pause operations at part, or all, of the Burton Mine Complex.”

The collapse was confirmed on the same day Canadian public policy think tank Fraser Institute released it’s Annual Survey of Mining Companies which ranked Queensland at 39 out of 82 jurisdictions around the world for investment attractiveness.

The mining investment attractiveness list from the Fraser Institute. Photo: Supplied

National’s Queensland Senator Matt Canavan said the survey showed the impact of government policy on the mining sector with the state ranking lower than Namibia, Tanzania and Indonesia.

“It’s frustrating when we have some of the best coal in the world and some of the worst government policy in the world,” he said.

“These two things don’t match up and if we don’t change our policy settings we’re going to lose a large part of our mining industry.”

Mr Cananvan said Queensland was marked down in the survey for uncertainty about land claims, uncertainty about regulations and regulatory duplication and consistency

“We have basically put a whole lot of red tape on the mining sector and that's made it difficult to attract any investment,” he said.

“Clearly royalties have played a role and while I respect the Queensland government’s decision not touch royalties this term we have to have a proper investigation into the impact of the tax rates on coal in Queensland.

Mr Canavan said coal prices have fallen but not to record lows.

Queensland Senator Matt Canavan has blasted government policy. Picture: Leighton Smith.

“The key issue for the sector is that the cost of mining has ballooned because of red tape and high costs,” he said.

“So when you have a price correction, as you always do in any commodity market, you’re seeing a much harder environment for the mining sector because margins get compressed.

“We’ve always been able to maintain a strong mining sector because we’re at the lower cost end of the cost curve. That means when cost corrections happen our mines generally stay open and then they can reap the rivers of gold when prices go up.”

The Queensland Resources Council chief executive Janette Hewson said operating conditions in the coal industry have become extremely challenging and she targeted the royalty regime.

“Energy and production costs have risen significantly for coal producers while coal prices are stubbornly low and Queensland producers are paying the world’s highest coal royalty tax rates,” she said.

“QRC is aware of other mining companies operating in Queensland experiencing difficulties attributable to the same factors.

“The resources sector, particularly coal, is crucial to Queensland’s economic prosperity and industry continues to work with the Government on policies that make our state competitive and more productive, to attract and retain investment across all commodities.

“We need a fair and balanced coal royalty regime that delivers for both Queensland and coal producers.”

A spokesperson for Treasurer David Janetzki said the independent Queensland Revenue Office was responsible for the consideration of royalty relief, and it is a matter for them to determine that course of action.

“The Crisafulli Government understands the many challenges facing the industry and is working to fast-track approvals and stabilise the regulatory environment to drive new investment,” they said.

“We are fully supportive of operations continuing at the mine, and the workers who underpin our regional communities and our state’s prosperity.”

Originally published as 500 jobs up in the air as Bowen Coking calls in administrators after talks with creditors fail