BHP has announced it will suspend operations at part of its Saraji coking coal mine in Queensland, placing 750 workers at risk, in a decision that has reignited debate over the state’s royalty regime and the human cost of industry shifts.
The Saraji South pit, part of the Saraji Mine Complex jointly owned by BHP and Mitsubishi Development, will be placed into care and maintenance from November 2025. The complex produced 8.2 million tonnes of coking coal last financial year.
BHP Mitsubishi Alliance (BMA) Asset President Adam Lancey said the decision was not taken lightly. “As joint owners of BMA, BHP and Mitsubishi Development do not want to see operations paused or jobs lost, but these are necessary decisions in the face of the combined impact of the Queensland Government’s unsustainable coal royalties and market conditions,” he said.
Coking coal prices, which spiked above US$600 a tonne after Russia’s invasion of Ukraine, have since fallen back to around US$190. At the same time, royalties in Queensland jumped sharply in 2022, with a top tier of 40% applying once coal prices exceed A$300 a tonne. BHP chief executive Mike Henry has criticised the increase, saying it was introduced without industry consultation.
The decision comes only days after the Mining and Energy Union (MEU) secured a Federal Court ruling rejecting BHP’s attempt to delay wage rises under new “same job, same pay” laws. The union said the ruling would lift wages for 1,800 labour-hire workers contracted to BMA by up to A$30,000 a year.
“BHP should stop using coal workers and communities as pawns in its fight with the Queensland Government over royalties,” MEU Queensland President Mitch Hughes said.
For local communities, the looming suspension represents more than a financial hit. The challenge now is how to manage the redundancies and support workers in transitioning, whether through redeployment across BHP’s other Queensland operations or into new industries.