The Crisis in Queensland's Coal Mining Sector

A significant wave of job cuts is currently impacting Queensland's lucrative coal mining industry, raising serious concerns about the future of employment in the region.

Major Job Losses Announced

BHP has announced it will cut 750 jobs at its Saraji mine in the Bowen Basin, a coal-rich area in central Queensland. On the same day, Anglo American revealed plans to eliminate nearly 300 jobs from its Grosvenor mine and Brisbane head office. Additionally, around 500 jobs are at risk at Bowen Coking Coal's Burton mine complex after the company entered administration in July.

Factors Driving the Job Cuts

Lower Coal Prices

Coal prices soared to historic highs of over $600 per tonne in early 2022, driven by post-Covid demand and supply constraints. However, prices have since fallen sharply. BHP's average selling price dropped from $401 per tonne in 2024 to $291 per tonne in the 2025 financial year, squeezing profitability.

Rising Production Costs

Mining is a capital-intensive industry with high costs for machinery, wages, and regulation. Production costs have surged by 47% from 2021 to 2023, outpacing inflation. High wages, such as dump truck drivers earning over $130,000 annually, contribute to these rising expenses, reducing profit margins per tonne of coal.

Aggressive Coal Royalties

Queensland has the world's highest coal royalty rates, with a tiered structure that charges up to 40% on prices exceeding $300 per tonne. This system, implemented in 2022, means companies pay significant royalties regardless of profitability, capping potential earnings during price upswings and forcing quicker action during downturns.

Economic Impact and Future Risks

Coal mining is a cornerstone of Queensland's economy, directly employing over 42,000 people and supporting nearly 400,000 additional jobs. The industry contributed $4.5 billion in wages and $10.6 billion in royalties in 2023-24. With companies like Coronado Global Resources and Stanmore Resources reporting losses, further job cuts are likely if low prices persist.

Political and Industry Responses

There is growing pressure for a review of the royalty regime, with critics arguing it harms investment and employment. The current LNP government has pledged to maintain the system until at least 2028-29, but internal dissent is increasing. Industry leaders and politicians are calling for balanced solutions to protect jobs and sustain the sector.