BHP to cut about 750 coal jobs in Queensland, cites 'coal crisis' and state royalties

Mining giant BHP will eliminate roughly 750 coal-sector roles across Queensland and suspend low‑margin operations there, the company’s BHP Mitsubishi Alliance (BMA) unit said as it blamed a "coal crisis" and the "unsustainable impact of the Queensland Government’s coal royalties" on business returns.

Workers were informed of the cuts on Wednesday, Sept. 17, 2025, according to the company. In a statement, BMA said: "Due to the unsustainable impact of the Queensland Government’s coal royalties on business returns, BMA is removing approximately 750 roles across Queensland and suspending low‑margin operations. While medium‑term demand for BMA’s premium hard coking coal is strong, maintaining operations in lower margin areas of BMA's mine footprint is not sustainable under current conditions in Queensland."

BHP Mitsubishi Alliance is the partnership through which BHP operates much of its Queensland metallurgical coal business. The company emphasized that demand for its premium hard coking coal — the metallurgical coal used in steelmaking — remains solid in the medium term, but said that several mining activities at the lower end of its margin spectrum cannot be sustained under the current royalty regime.

The announced workforce reductions and operational suspensions form part of BMA’s effort to realign operations to profitability amid what it described as a sectoral crisis. The company did not immediately outline which specific sites or regions within Queensland would be affected, nor did it provide a timetable for the suspensions. BMA said further information would be provided as it works through consultation and implementation processes.

Queensland is one of the world’s largest exporters of metallurgical and thermal coal, and state royalties are a longstanding element of mining economics there. BMA’s statement places direct responsibility on the impact of Queensland’s royalties policy on returns from lower‑margin assets, a claim that highlights the sensitivity of coal‑mining economics to government levies when commodity prices or margins tighten.

The cuts come amid broader changes in global energy and steel markets as buyers, regulators and investors reassess exposure to fossil fuels. While markets for premium coking coal used in steelmaking have shown resilience relative to thermal coal used for power generation, operators say profitability can shift sharply across different parts of a mine footprint when royalties, transport costs and contract terms converge against narrow margins.

BMA’s announcement should prompt consultations with employees, unions and local communities dependent on coal mining jobs, and it may lead to follow‑on statements from state officials and industry groups. BHP has previously adjusted its coal portfolio over time in response to market and policy conditions; the company framed this move as necessary to preserve its higher‑margin operations.

BMA said it will engage with affected employees as it implements the changes and will provide further details in due course.