Queensland’s coal industry faces a major blow as BHP Mitsubishi Alliance (BMA) announced plans to cut about 750 jobs across its operations, citing the financial strain of state royalties and challenging market conditions.
The company confirmed that its Saraji South mine at Dysart will be mothballed from November. Saraji South, part of the greater Saraji complex, is one of BMA’s five steel-making coal mines in the Bowen Basin and has been in operation since 1974.
BMA asset president Adam Lancy said the decision, while difficult, was necessary.
“The simple fact is the Queensland coal industry is approaching a crisis point,” he said.
“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.”
Federal Member for Capricornia Michelle Landry described the job losses as devastating for the region.
“The announcement of 750 job losses at BHP is nothing short of a tragedy for Dysart and the wider Bowen Basin. Behind every job lost is a family struggling with a mortgage, children missing out on after-school sport and a local economy that will be gutted,” she said.
Ms Landry attributed the cuts to state and federal government policies.
“This is not bad luck, it is the direct result of the former Labor government’s job-destroying royalty regime… these royalties are now the highest in the world. They are driving up costs, shutting down investment and killing jobs across Central Queensland.”
She highlighted the rising costs for coal production.
“Metallurgical coal cost of production has skyrocketed 47 per cent in three years, while thermal coal costs have exploded by 50 per cent. Mines are being pushed to the brink and workers are paying the price.”
Ms Landry also called for urgent government action.
“That is why I will be lobbying my LNP colleagues relentlessly to bring forward an urgent review of the royalty regime. We simply cannot afford to sit on our hands while mines close and livelihoods are destroyed.”
She further criticised federal policies.
“The Federal Labor Government has piled on more costs with its job-destroying Safeguard Mechanism, a carbon tax by stealth… Central Queensland has become ground zero for Labor’s reckless carbon tax,” Ms Landry said, emphasising coal’s ongoing economic significance.
“Coal remains the backbone of our economy… Far from being a sunset industry, coal remains our nation’s second largest export and a critical part of powering the world.
"Labor’s war on mining is economic vandalism,” she said, calling for urgent reform to protect jobs and regional communities.
BHP's Saraji mine near Dysart. Photo source: BHP
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