Royalties row flares as second major miner axes jobs

Laine Clark |

BHP will mothball a Queensland project after a half-century of operation and cut other jobs.
BHP will mothball a Queensland project after a half-century of operation and cut other jobs.

Almost 1000 workers will now be out of a job after a second major mining company revealed new cuts, citing the negative impact of a state’s coal royalties regime.

Anglo American Australia confirmed the redundancies across its Queensland operations without citing a number, but it is believed up to 200 people are affected.

The news comes a day after the BHP Mitsubishi Alliance confirmed it would axe 750 jobs across the state and mothball its Saraji South mine from November.

Coal mine
Almost 1000 mining jobs will disappear after two companies confirmed cuts at Queensland operations. (Dan Peled/AAP PHOTOS)

The joint venture company blamed the cuts on the government’s “unsustainable” royalties regime and market conditions, claiming the state coal industry is reaching “crisis point”.

Anglo American Australia said the redundancies will be from its Brisbane head office and central Queensland mines.

This includes the Grosvenor underground mine at Moranbah in the Isaac region, which hasn’t reopened since an underground fire in June 2024.

“These changes are essential to secure the future of our steelmaking coal operations in central Queensland,” people and corporate relations vice-president Ben Mansour said in a statement.

“Our focus is on supporting safe, core operations and simplifying our business to adapt to ongoing market pressures – including lower coal prices and rising costs.”

Workers
Lower coal prices and higher costs have been blamed for coal mine closures and job redundancies. (Dan Peled/AAP PHOTOS)

The Isaac region was already reeling from the alliance’s decision to close the Saraji South site, one of its longest-running steelmaking coal mines with operations starting in 1974.

Isaac Mayor Kelly Vea Vea said on Wednesday the community felt like it was caught in the crossfire of the coal royalties debate and called on the government to sort it out.

The BHP-Mitsubishi joint venture took aim at Queensland’s coal royalty scheme after confirming the job cuts, sparking calls for reform from mining lobby groups.

But the Liberal National Party has refused to make any changes to the state’s progressive royalty regime.

The former Labor government introduced the tiered system in 2022, delivering lucrative royalties from mining companies and taking more when coal prices are high.

Coal
Affected communities feel caught in the crossfire between industry and government, the mayor says. (Dave Hunt/AAP PHOTOS)

“When it comes to the royalties debate, we need the companies and government to get in a room and sort this out,” Ms Vea Vea said of the joint venture’s decision.

“Right now, we have industry firing shots across the bow, government with their hands over their ears and communities caught in the crossfire.”

Ms Vea Vea extended an invitation for the state government’s resources cabinet committee to visit and meet with industry and community to “see first hand what is at stake”.

“The mining industry and our communities are intrinsically linked. What happens to one has a ripple effect on the other,” she said.

“It’s time to take this conversation out of the high rises … and bring it to the coal face – our region has had enough.

“We need industry and government to get in the same room and find common ground.”

Coal
Queensland’s government says its predecessor established the royalties regime without consultation. (Dave Hunt/AAP PHOTOS)

Queensland Opposition Leader Steven Miles on Wednesday called on the government to do “whatever they can” to either support the company to keep the jobs, or help axed workers find other roles.

Also under review is the BHP FutureFit Academy in northern Queensland, which trains workers joining the industry and has about 100 trainees.

Premier David Crisafulli said it was a “really difficult time for workers”, claiming Labor had set up the mining taxes without consultation.

“Our government is working to restore confidence in our resources industry – the days of the government at war with the industry are over,”  he told parliament on Wednesday.

AAP