Queensland's deputy premier, Jarrod Bleijie, has labelled BHP 'unAustralian' and defended the state's mining royalties scheme after BHP Mitsubishi Alliance (BMA) announced plans to mothball the Saraji South coalmine and cut 750 jobs. BMA blamed the move on 'unsustainable' coal royalties and market conditions.
Speaking to media, Bleijie said the Liberal National Party government would not abandon the progressive coal royalties regime, noting BMA had made 'billions of dollars from the resources owned by Queensland taxpayers'. He dismissed BHP's argument, describing mine mothballing as 'the cyclical nature of mines in Queensland'. Bleijie also criticised BHP's decision to review the FutureFit Academy in Mackay, calling the move 'unAustralian'.
BMA's asset president, Adam Lancey, said the mothballing and job cuts were 'necessary decisions in the face of the combined impact of the Queensland government's unsustainable coal royalties and market conditions'. He warned that 'the Queensland coal industry is approaching a crisis point', with real impacts on regional jobs and communities.
The Mining and Energy Union (MEU) accused BHP of 'using coal workers and communities as pawns in its fight with the Queensland government over royalties'. MEU Queensland president Mitch Hughes said BMA had 'form in turning this mine on and off to chase high coal prices'. The union noted most of the 750 job cuts were in corporate and support roles, with only about 72 coal production jobs affected.
Ellen Roberts, national coordinator of Lock the Gate Alliance, said BHP's continued moves to expand coalmines in central Queensland exposed '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 Saraji complex continue operating.
