Anglo and BHP Job Cuts Shake Queensland Coal Industry

Queensland Coal Industry Crisis: Job Cuts and Mine Closures Intensify The Queensland coal industry is facing unprecedented challenges as major mining companies implement significant workforce reductions across their operations. Recent announcements from industry giants Anglo American and BHP have sent shockwaves through the sector, with more than 950 jobs on the chopping block. This dramatic contraction signals growing pressure on one of Australia's key resource sectors and raises questions about the long-term viability of coal mining in the region. Queensland Coal Industry's Perfect Storm Queensland's coal sector is experiencing a convergence of challenges that have created what industry leaders describe as unsustainable business conditions. The combination of falling prices, rising costs, and regulatory pressures has forced companies to make difficult decisions about their operations and workforce. Coal prices have declined significantly from their 2022 peak, with metallurgical coal now trading around $190 per tonne—a sharp drop from the extraordinary highs of over $600 per tonne during the 2022 supply crunch. At one point during the 2022-2023 price spike, coking coal spot prices even peaked at over $900 per tonne, creating windfall profits that have since evaporated. This price decline, combined with Queensland's tiered royalty system and rising operational costs, has squeezed profit margins and challenged the economic viability of several mining operations. Furthermore, global coal reserves outlook suggests further volatility in the market as energy security concerns mount. Key Factors Driving the Industry Contraction: Declining global coal prices (currently around $190/tonne) Queensland's tiered royalty system (up to 40% for prices above A$300/tonne) Rising production and operational costs Increased global competition from other coal-producing regions Operational challenges including safety incidents and regulatory compliance What Cuts Has BHP Announced in Queensland? BHP Mitsubishi Alliance (BMA) has revealed plans to eliminate approximately 750 positions across its Queensland coal operations. This represents one of the largest workforce reductions in the region's recent history and signals a significant shift in the company's operational strategy. BHP's Saraji South Suspension The most significant impact will be at the Saraji South operation, part of the larger Saraji complex near Dysart in Central Queensland, which will be placed into care and maintenance beginning November 2025. This decision directly affects 72 employees at the site. Care and maintenance status means the mine will not be permanently closed but will cease active operations while maintaining the site in a condition that allows for potential future restart if economic conditions improve. Broader Impact of BHP's Restructuring BMA's job cuts extend well beyond the Saraji South mine site to include: Corporate office positions Support roles across various locations Rail facilities personnel Port operations staff Mining operational staff BHP has also placed its Future Fit Academy training centre in Mackay under review, creating further uncertainty for workers in the region. BHP Asset President Adam Lancey characterized the workforce reductions as "necessary decisions" while expressing regret over the impact on employees. In a statement, Lancey directly attributed the cuts to the "combined impact of the Queensland government's unsustainable coal royalties and market conditions." This follows the recent BHP pivot on coal operations that analysts have been tracking with concern. How Has Anglo American Responded to Industry Pressures? Following BHP's announcement, Anglo American confirmed on September 18, 2025, that it would eliminate more than 200 positions across its Queensland coal operations, creating a grim week for the state's coal industry. Anglo's Strategic Workforce Reduction Anglo American's cuts will primarily affect: Brisbane office staff (majority of reductions) Central Queensland operational personnel Grosvenor underground mine workers The company has implemented voluntary redundancy programs to manage the workforce reduction, though the total number of involuntary job losses remains unclear. According to recent news reports, the company has been struggling with operational challenges for several months. Grosvenor Mine Challenges The Grosvenor underground mine has faced particular difficulties following a fire in mid-2024 that forced its closure. Despite efforts to protect jobs by redeploying workers to other operations, Anglo American has now initiated a voluntary redundancy process for Grosvenor employees. Ben Mansour, Vice President for People and Corporate Relations at Anglo American Australia, noted that the company had "worked to protect the jobs of our Grosvenor workforce for more than a year" but that the "phased nature of the re-entry work" necessitated workforce reductions. The company cited "ongoing market pressures" as the primary driver behind its decision to reduce staff numbers across its operations. What Is the Total Impact on Queensland's Coal Workforce? The combined announcements from Anglo American and BHP represent more than 950 job losses across Queensland's coal sector in 2025. This significant reduction highlights the extent of the industry's contraction and raises concerns about the ripple effects on regional communities that depend heavily on mining employment. Company Job Cuts Primary Locations Key Factors Cited BHP Mitsubishi Alliance 750 Saraji South mine, corporate offices, support operations High royalties, market conditions Anglo American 200+ Brisbane office, Grosvenor mine, Central Queensland operations Market pressures, operational challenges Total 950+ Primarily Bowen Basin region Industry-wide economic pressures These job cuts represent a significant percentage of the total coal mining workforce in Queensland and will have substantial impacts on regional communities that rely on the industry for economic stability. The situation is further complicated by anticipated coal supply challenges 2025 as the market undergoes transformation. How Are Industry Bodies Responding to the Crisis? The Queensland Resources Council (QRC) has been vocal about the impact of the state's royalty regime on mining operations and employment, positioning the current crisis as a direct result of government policy decisions. QRC's Position on Royalty Reform QRC CEO Janette Hewson directly connected the job losses to government policy, stating that the royalty system was "costing Queenslanders their livelihoods." The organization has called for urgent reform of Queensland's coal royalty framework. "QRC warned the previous Labor government about the consequences of introducing the world's highest coal royalty rates. By accepting bad policy, they have cost jobs for Queenslanders," Hewson stated. The industry body has expressed concerns about Queensland's reputation as an investment destination, warning that the state's "international reputation as a reliable investment destination is at risk." The QRC has offered to work with the current LNP government to develop "a framework that protects jobs, promotes investment and delivers benefits to all Queenslanders." What Is the Union Response to the Job Cuts? Labor organizations have pushed back against the mining companies' narrative, particularly regarding the attribution of job cuts to the royalty regime, suggesting that corporate profit motives may be a more significant factor. Union Criticism of Corporate Decisions The Australian Manufacturing Workers' Union Queensland & Northern Territory Branch has characterized BMA's job cuts as prioritizing profits over people. AMWU State Secretary Rohan Webb criticized BHP for "using workers' livelihoods as leverage in a dispute with government." Webb noted that "the truth is this company made windfall gains during the coal price spike and is still highly profitable," suggesting that the job cuts are not solely the result of economic necessity. Similarly, Mining and Energy Union Queensland President Mitch Hughes questioned the companies' emphasis on royalties as the primary driver of job cuts. Hughes pointed out that "even with higher royalties, BHP profited immensely from the coal price spike of 2022-2023, which saw coking coal spot prices peak at over $900 a tonne." Union representatives have also noted that BHP's divestment strategy in Queensland predated the 2022 royalty rate changes, suggesting other factors may be driving current decisions. They've pointed to BHP's recent loss of a Federal Court case over equal pay for labor-hire workers as potentially influencing the timing of the job cut announcements. What Is Queensland's Coal Royalty Structure? The state's royalty regime has become a central point of contention in discussions about the industry's viability, with mining companies arguing that the current structure makes Queensland operations globally uncompetitive. Current Royalty Framework Queensland's coal royalty structure was significantly revised in July 2022, introducing a tiered system with substantially higher rates for higher coal prices: Coal Price Range Royalty Rate (Prior to 2022) Royalty Rate (After July 2022) Up to A$150/tonne Up to 15% Up to 15% A$150-A$300/tonne 15% Progressive increase Above A$300/tonne 15% 40% With current coal prices around $190 per tonne, mining companies argue this structure makes Queensland operations uncompetitive globally. BHP has claimed that its Queensland coal division paid eight times more in royalties than it earned in profits during the previous fiscal year, with royalties reportedly consuming "67 cents of every dollar in revenue." This dramatic increase in the royalty burden came at a time when coal prices were at historic highs, but as prices have normalized, companies argue the royalty structure has not adjusted to reflect market realities. Many in the industry are calling for government intervention in mining to create more sustainable operating conditions. What Is the Outlook for Queensland's Coal Industry? The current situation represents a critical juncture for Queensland's coal sector, with several factors likely to influence its future trajectory and long-term viability. Short-Term Industry Prospects The immediate outlook suggests continued pressure on Queensland coal operations: Further workforce reductions may occur if market conditions don't improve Additional mines could be placed into care and maintenance Companies may accelerate divestment from Queensland coal assets Regional communities dependent on mining face economic uncertainty Potential for industry consolidation as smaller operators struggle with costs Long-Term Considerations Several factors will determine the long-term viability of Queensland's coal industry: Future coal price movements, particularly for metallurgical coal used in steelmaking Potential reforms to the state's royalty structure under the LNP government Global demand trends for coal, especially from steel producers in Asia Technological developments affecting coal's competitiveness and environmental impact Policy decisions regarding climate change and emissions reduction targets Development of alternative steelmaking technologies that reduce reliance on metallurgical coal Investment in mining automation and efficiency to reduce operational costs The industry's ability to navigate these challenges will determine whether Queensland remains a major global coal producer or faces a more significant contraction in the coming years. Recent mining industry evolution trends suggest that adaptation will be crucial for survival. A Pivotal Moment for Queensland Coal The current wave of job cuts and operational changes represents a significant inflection point for Queensland's coal industry. The sector, long a pillar of the state's economy and a major employer in regional communities, faces unprecedented challenges from both market forces and policy settings. The tensions between industry profitability, government revenue collection, and community stability have created a complex landscape that requires careful navigation. Mining companies point to the royalty regime as unsustainable, while unions question whether corporate strategy rather than government policy is driving job cuts. For regional communities dependent on coal mining, the stakes are particularly high. These areas face potential economic dislocation if the industry continues to contract, with limited alternative employment opportunities in many mining regions. As companies, unions, and government stakeholders navigate these challenges, the decisions made in the coming months will likely have lasting implications for Queensland's resource economy, regional employment, and the future structure of the state's coal industry. Disclaimer: This article contains forward-looking statements about the Queensland coal industry. These projections are based on current market conditions and policy settings, which may change. Readers should consult financial and industry experts before making investment or career decisions based on this information. Want to Identify the Next Major Mineral Discovery? Don't miss potential market-moving announcements on the ASX. 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