BHP Mitsubishi Alliance (BMA) reportedly plans to eliminate 750 jobs across its Queensland operations, citing high coal royalties imposed by the state government.
The company is also planning to place its Saraji South mine in Dysart into care and maintenance from November this year, affecting around 72 employees.
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The decision is part of a broader review of its operations due to increasing costs and market conditions, reported the Australian Broadcasting Corporation (ABC).
BMA’s job reductions are expected to impact corporate and support roles across various segments including rail ports and coal operations.
The Mining and Energy Union (MEU), a trade union representing workers in mining, oil, gas and power industries, noted that the process of downsizing began several months ago.
MEU Queensland president Mitch Hughes said: “BHP should stop using coal workers and communities as pawns in its fight with the Queensland Government over royalties. Workers need facts, certainty and security – not alarmism.
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By GlobalData“It is very disappointing to see BHP close a mine as soon as coal prices come off the boil, but they have form in turning this mine on and off to chase high coal prices, with no regard for the community or workforce impact.”
Additionally, BMA’s FutureFit Academy in Mackay, which has trained more than 400 apprentices and trainees, is under review to assess its financial viability.
Current trainees will receive assistance to find alternative employment within BHP.
BMA asset president Adam Lancey was quoted by ABC as saying: “The company did not want to see jobs lost, but these are necessary decisions in the face of the combined impact of the Queensland Government’s unsustainable coal royalties and market conditions.
“This is now having real impacts on regional jobs, communities and small businesses.
“The uncertainty this creates for our people and our communities is not taken lightly, and we will do everything we can to support them.”
The royalties in question are levied on revenue rather than profits, based on the price of coal sold, thereby affecting BMA’s financial performance.
BMA has reported significant financial contributions to the Queensland Government, with payments exceeding A$4bn ($2.67bn) in the 2024 financial year and around A$8.1bn to suppliers.
In 2023, the company sold its Daunia and Blackwater mines to Whitehaven for A$2bn due to declining profits and increased royalties.
BHP, which owns a stake in BMA, recorded its lowest full-year earnings in five years, with underlying profits dropping by 26% to $15.7bn.
