BHP to Cut 750 Coal Jobs in Queensland Amid Royalty Dispute
One of Australia’s biggest mining employers, the BHP Mitsubishi Alliance, has announced that around 750 jobs will be cut across its Queensland coal operations. The company said it was a decision it did not want to make, but claimed that a combination of tough market conditions and what it described as “unsustainable” state government coal royalties had forced its hand.
The biggest impact will be felt at the Saraji South mine near Dysart, which will be mothballed from November. About 72 miners at that site will lose their jobs directly, but the broader cuts will extend across the business, including roles at coal ports, rail operations, and corporate offices. Workers have been told the mine will move into “care and maintenance” mode — essentially a suspension until conditions improve.
For local communities, this announcement is devastating. Mining towns like Dysart rely heavily on these jobs, and the ripple effects are expected to reach small businesses, local services, and families. Union leaders have accused BHP of playing politics, arguing that workers were left in the dark and are now being used as leverage in the company’s fight with the government. The Mining and Energy Union said what people need most is clarity and security, not fear.
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BHP, however, insists the economics just don’t stack up. The company has also put its Mackay-based FutureFit Academy under review. This training hub has already supported more than 400 apprentices and trainees, but its future is now uncertain. Queensland’s Deputy Premier went so far as to call the move “un-Australian,” saying the company has profited enormously from resources that belong to Queenslanders and should continue investing in young workers.
Premier David Crisafulli acknowledged how tough this will be for affected families. He argued the previous government had created uncertainty by hiking royalties without consultation, but he promised his government was committed to restoring trust with the industry. At the same time, opposition MPs and the state’s mining lobby have renewed their calls for the royalties regime to be cut back, claiming it is threatening the viability of coal mining in the state.
It is not the first time this mine has been shuttered. Back in 2012, operations were also suspended due to falling coal prices, only to reopen years later when conditions improved. This cycle, critics say, highlights how global coal prices and corporate profit margins often dictate the fate of entire communities.
For now, about 9,500 BHP workers and contractors across Queensland will be watching closely. The company has promised to help apprentices, trainees, and employees find other roles within its business, but the uncertainty remains. While BHP insists its decisions are being driven by financial pressures, union voices say it is hard to ignore the billions of dollars the company has made during the recent coal boom.
In short, Queensland’s coal industry is being described as standing at a crossroads — between global demand, government policy, and the livelihoods of thousands of families who depend on it. The fallout from this decision will not just reshape mining towns, but could also reignite a much bigger debate about how Queensland balances its resources wealth with the future of its workforce.
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