Coal ‘crisis’: hundreds of jobs cut, mine mothballed
Laine Clark |
A coal industry “crisis” has led to hundreds of job cuts and a long-running mine to be mothballed, sparking criticism of a controversial royalty scheme.
BHP Mitsubishi Alliance has been branded “un-Australian” by the Queensland government after announcing the layoffs, with a union accusing the mining giant of spreading fear.
The alliance took aim at Queensland’s coal royalty scheme after confirming 750 job cuts across the state and its decision to place a Bowen Basin mine into care and maintenance from November.
“These are necessary decisions in the face of the combined impact of the Queensland government’s unsustainable coal royalties and market conditions,” alliance asset president Adam Lancey said on Wednesday.
“The simple fact is the Queensland coal industry is approaching a crisis point.”
Hundreds of jobs will be axed across the company’s state operations with the Saraji South project to be mothballed.
It is among the alliance’s five steel-making coal mines in central Queensland and one of the longest running, with operations starting in 1974.
Also under review is the BHP FutureFit Academy in Mackay, north Queensland, for workers joining the industry which has about 100 trainees, sparking a blunt response from the deputy premier.
“I think that is un-Australian,” Jarrod Bleijie said.
“They have made billions of dollars from the resources owned by Queensland taxpayers.
“They should keep investing in the future of young people who want a job in a mine or a resource sector in Queensland.”
Queensland’s Liberal National government refused to make any changes to the state’s progressive royalty regime introduced by the previous Labor regime, saying it’s locked in until 2029/30.
But the deputy premier said the Queensland government was “not at war” with the mining sector.
“We are doing everything we can as a government to make sure that Queensland is open for business, particularly in the mining sector,” Mr Bleijie said.
“We are approving leases and mining approvals far more efficiently and quicker.”
The former Labor government introduced the tiered system in 2022, delivering lucrative royalties from mining companies and taking more when coal prices are high.
It earned the state billions of extra revenue but drew the ire of mining companies and lobby groups who described it as the world’s highest coal royalty taxes.
“This is now having real impacts on regional jobs, communities and small businesses,” Mr Lancey said.
“The uncertainty this creates for our people and our communities is not taken lightly, and we will do everything we can to support them.”
BHP had warned it would not make any new investments in Queensland “under the current conditions”.
Lobby group Queensland Resources Council called for reforms, offering to work with the state government to deliver a coal royalty framework that struck “the right balance”.
The royalty scheme along with a coal price drop and soaring production costs had made it unviable to continue operating for many operations in Queensland, council CEO Janette Hewson said.
“Queensland can’t afford to continue with a bad policy that will cost more jobs and weaken our state’s economy,” she said.
The Mining and Energy Union accused the alliance of spreading fear, saying it was using coal workers and mining communities as pawns in its royalties fight.
“It’s very disappointing to see BHP close a mine as soon as coal prices come off the boil,” the union’s Queensland president Mitch Hughes said.
He said BHP’s claims about a state coal crisis were misleading and “frankly shameful”, accusing them of sulking over being forced to share windfall profits.
Treasurer Jim Chalmers said the royalty scheme was a matter between the Queensland government and the alliance.
“This is a difficult day for hundreds of workers and their families, and that’s our primary focus,” he said.
AAP
