Queensland’s Burton coal mine could shut leaving hundreds without work

A coal mine employing hundreds of workers is on the brink of closure, and could “pause” production within months if additional cash or equity is not sourced.

Hundreds of workers at a Queensland coal mine may lose their jobs as its owner considers pausing operations over financial issues.

The Burton coal mine, 80 kilometres northwest of Moranbah, has been attempting to ramp up production and lower costs, however the flood season and record low prices have put the facility in a tough position.

The mine, which first opened in 2022, could “pause” production within a matter of months if additional cash or equity is not sourced.

The owner of the mine, Bowen Coking Coal Ltd, released a statement on Friday to the stock exchange.

The mine could pause production within a matter of months. File image: NewsWire / Peter Lorimer.

“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 ASX statement read.

A number of the company’s coal mines have been forced to close in recent years including the Bluff mine near Blackwater.

Bowen Coking Coal executive chair Nick Jorss told The Courier Mail soaring state royalties and low prices are to blame for the crisis.

“Bowen is the tip of the iceberg of the pain being felt by central Queensland,’’ he 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.”

The Bowen complex was initially given a 10-year life, and produces two million tonnes of coal per year.

Originally published as Queensland’s Burton coal mine could shut leaving hundreds without work