Queensland’s deputy premier, Jarrod Bleijie, has labelled BHP “unAustralian” after the mining giant announced it would mothball the Saraji South coalmine and cut 750 jobs, blaming the state’s coal royalties scheme. Bleijie defended the progressive royalties regime, introduced under the former Labor government, saying BHP has made “billions of dollars from the resources owned by Queensland taxpayers”.
BHP Mitsubishi Alliance (BMA) said on Wednesday that it would suspend operations at Saraji South, an open-cut metallurgical coalmine about 300km north-west of Rockhampton, and cut 750 roles across the state. The company cited “unsustainable” royalties and market conditions. BMA asset president Adam Lancey warned that “the Queensland coal industry is approaching a crisis point”, with real impacts on regional jobs and communities.
Bleijie dismissed the argument, noting that “care and maintenance is the cyclical nature of mines in Queensland”. He also criticised BHP’s decision to review the future of its FutureFit Academy in Mackay, which trains new miners, calling it “unAustralian”. “They should keep investing in the future of young people who want a job in a mine or resource sector,” he said.
The Mining and Energy Union (MEU) accused BHP of using workers as “pawns in its fight with the Queensland government over royalties”. MEU Queensland president Mitch Hughes said the company has “form in turning this mine on and off to chase high coal prices”. The union noted that most of the 750 job cuts are in corporate and support roles, with only about 72 coal production jobs affected.
Community group Lock the Gate Alliance said BHP’s moves to expand other coalmines expose “the hollowness of the company’s claims that Queensland’s tiered royalties rate is to blame”. The Saraji South mine will be placed into care and maintenance in November, while other mines in the larger Saraji complex continue operating.
