BHP has announced it will cut 750 jobs across Queensland, citing the “unsustainable impact” of the state government’s mining royalties as the primary reason. The BHP Mitsubishi Alliance (BMA) is also set to suspend operations at Saraji South—one of Australia’s largest mines—starting in November, marking the second time the site has closed.
BHP’s decision has drawn criticism, with the union representing workers accusing the mining giant of using employees as “pawns” in its conflict with the state government. BMA’s asset president, Adam Lancey, noted that high royalty rates, layered upon challenging market conditions, have led to necessary job losses and operational pauses. He expressed concern that the current state of the Queensland coal industry could escalate into a crisis, affecting local jobs, communities, and small businesses.
Queensland Premier David Crisafulli has retained the existing mining royalty framework established under the former Miles government, indicating no alterations will occur until at least the 2029-30 fiscal year. Deputy Premier Jarrod Bleijie asserted that the government is not at odds with the mining sector as the LNP upheld pre-election promises not to modify the royalty rates, which contribute significantly to state revenue.
The Mining Energy Union responded to BHP’s claims by suggesting the mining company was misrepresenting the situation. Union President Mitch Hughes remarked that while coal prices have returned to typical levels, framing the sector as in a “crisis” was misleading and shameful. He emphasised that Queensland’s high-quality coal belongs to the residents, not solely to BHP.
Hughes criticised BHP for contemplating the closure of its FutureFit Academy training centre in Mackay, calling this move “unAustralian” and urging BHP to continue investing in the local workforce. He argued that workers deserve stability and clarity rather than fearmongering tactics.
BHP’s profitability was notable, reporting an underlying attributable profit of $15.27 billion for the 2024-25 financial year, despite paying $10.5 billion in taxes, royalties, and other obligations in Australia.
In addition to grappling with state royalties, BHP is challenging a federal proposal for a cashflow tax recommended by the Productivity Commission, which would impose a five per cent tax on large corporations and offer a 20 per cent reduction for small to medium enterprises. BHP contended that this tax would lead to a higher overall tax burden and could deter future investments in Australia, suggesting that increased capital might shift overseas rather than be reinvested domestically.