BHP Slashes 750 Jobs Across Queensland Coal Operations

BHP Job Cuts in Queensland: Economic Impact and Industry Implications

BHP has announced the elimination of 750 positions within its Queensland coal operations, representing a significant workforce reduction. This decision affects primarily the BHP Mitsubishi Alliance (BMA), Australia's largest coal producer. The cuts target various operational roles across multiple sites, with the majority impacting the company's metallurgical coal business in the state.

Key Details of the Job Reduction

• 750 total positions eliminated across Queensland coal operations

• Primarily affecting the BHP Mitsubishi Alliance (BMA) joint venture

• Announced in September 2025 as part of broader operational restructuring

• Representing approximately 10% of BHP's Queensland coal workforce

Why Is BHP Cutting Jobs in Queensland?

The job cuts stem from a combination of economic pressures and regulatory challenges that have significantly impacted the profitability of BHP's Queensland coal operations.

Queensland Coal Royalty Rates

BHP has explicitly cited Queensland's coal royalty regime as a primary factor behind the workforce reduction. The royalty structure, implemented in 2022, features a progressive taxation system that increases rates as coal prices rise.

This tiered structure imposes royalty rates starting at 7-15% for coal priced under $150 per tonne, increasing to 20% for coal between $150-175 per tonne, then 30% for coal between $175-225 per tonne, and reaching 40% or more when prices exceed $300 per tonne.

BHP management has characterized these rates as "extreme" and claims they make long-term capital investment in Queensland coal operations financially unviable.

Coal Price Volatility

The global coal market has experienced significant price fluctuations:

• Newcastle coal futures dropped to approximately US$101 per tonne in September 2025

• This represents a three-month low

• Prices have fallen from over US$150 per tonne in October 2024

• Approximately 33% year-over-year price decline

This downward price pressure has squeezed profit margins, particularly for operations with higher production costs. The current iron ore price trends have also affected the broader resources sector, adding to the economic pressures.

Operational Restructuring

As part of its response to these challenges, BHP is implementing several operational changes:

• Mothballing the Saraji South coal mine in November 2025

• Potential closure of the FutureFit academy, which focuses on workforce diversity

• Suspension of lower-margin operational areas

• Shift from growth investment to maintenance of existing operations

What Has Been the Market Response to BHP's Job Cuts?

The announcement of job cuts has had a measurable impact on BHP's stock performance and market perception.

BHP Share Price Movement

• BHP shares declined 0.7% immediately following the announcement

• This compared to a 0.3% decline in the broader ASX 200 index

• Despite the short-term reaction, BHP shares have shown resilience over the past year

• 12-month share price performance shows a 2.5% gain (excluding dividends)

Analyst Perspectives

Market analysts have offered mixed views on BHP's decision:

• Some view the cuts as a necessary step to maintain profitability amid challenging market conditions

• Others express concern about potential long-term impacts on operational capacity

• Questions remain about BHP's future investment strategy in Queensland

According to ABC News, the move has triggered concerns among Queensland mining communities about further job losses in the sector.

How Did BHP Signal These Changes Previously?

The job cuts, while significant, were not entirely unexpected. BHP management had previously indicated potential workforce reductions during earlier financial reporting.

August 2025 Annual Results

During BHP's annual results presentation on August 19, 2025, CEO Mike Henry specifically highlighted concerns about Queensland's regulatory environment, noting that the state was "not being conducive to long-life capital investment owing to the current royalty regime."

The company further elaborated that without changes to royalty rates, it would:

1. Maintain its position of not investing in further growth at BMA

2. Focus on sustaining and optimizing existing operations

3. Consider pausing lower-margin operational areas if coal prices remained depressed

What Is the BHP Mitsubishi Alliance?

Understanding BHP's Queensland operations requires familiarity with the BHP Mitsubishi Alliance (BMA), which is central to the company's coal business in the state.

BMA Structure and Significance

• 50:50 joint venture between BHP and Mitsubishi

• Australia's largest coal producer

• Operates multiple metallurgical coal mines in Queensland's Bowen Basin

• Employs thousands of workers across various operational sites

• Produces primarily high-quality metallurgical coal used in steelmaking

BMA's Environmental Positioning

Despite coal's environmental challenges, BHP has positioned BMA's products as part of the solution to reducing global emissions, emphasizing that higher quality steelmaking coals, such as those produced by their BMA assets, will be valued for their role in reducing the greenhouse gas emission intensity of blast furnaces.

This perspective highlights BHP's strategy of focusing on premium coal products that can command higher prices while potentially offering environmental advantages compared to lower-quality alternatives. The company's approach to sustainability transformation reflects broader trends in the mining sector.

What Are the Broader Industry Implications?

BHP's decision to cut jobs in Queensland reflects wider trends and challenges facing Australia's coal industry.

Regulatory Environment Concerns

The Queensland coal royalty regime has become a flashpoint for industry concerns:

• Multiple mining companies have criticized the progressive royalty structure

• Industry groups warn about reduced investment in the state

• Debates continue about balancing government revenue needs with industry sustainability

Employment Trends in Australian Mining

BHP's cuts are part of a larger pattern of employment fluctuations in Australia's resources sector:

• Cyclical hiring and reduction patterns tied to commodity price cycles

• Increasing automation reducing workforce requirements

• Shift toward higher-skilled technical roles

• Growing focus on operational efficiency over expansion

The Brisbane Times reported that these cuts represent a direct message to the Queensland government regarding the impact of its royalty policies on mining investment.

Future of Coal Investment in Australia

BHP's decision signals potential longer-term shifts in coal investment patterns:

• Reduced capital allocation to new coal projects

• Focus on maintaining rather than expanding existing operations

• Potential geographic diversification to regions with more favorable regulatory environments

• Increased scrutiny of project economics given price volatility and regulatory risks

These changes align with broader industry consolidation trends observed across the mining sector globally.

What Impact Will This Have on Queensland Communities?

The job cuts will have significant ripple effects throughout Queensland's mining communities.

Regional Economic Effects

• Direct income loss for affected workers and their families

• Reduced spending in local businesses and services

• Potential property market impacts in mining-dependent communities

• Decreased economic activity in regional centers

Skills and Workforce Implications

The potential closure of BHP's FutureFit academy raises particular concerns:

• Reduced pathways for new workers to enter the mining industry

• Potential setback for diversity initiatives, particularly women in mining

• Loss of structured training programs for developing mining skills

• Challenges for workforce development in regional Queensland

For affected workers, mining job preparedness will become increasingly important as they seek new opportunities in a more competitive job market.

How Does This Compare to Other Mining Job Cuts?

BHP's workforce reduction follows similar moves by other mining companies facing comparable economic pressures.

Recent Industry Workforce Changes

Several major mining companies have announced job cuts or operational changes in 2025:

• Peabody Energy reduced staff at multiple Australian operations

• Various junior miners have scaled back exploration activities

• Industry-wide focus on operational efficiency and cost reduction

• Shift toward automation and technology-driven productivity improvements

Cyclical Nature of Mining Employment

The current round of job cuts reflects the historically cyclical nature of mining employment:

• Resource sector employment typically expands during commodity price booms

• Workforce contractions follow price downturns

• Companies prioritize maintaining operational flexibility

• Skilled workers often move between companies and projects as conditions change

These adjustments are part of the ongoing mining industry evolution that continues to reshape the sector's workforce needs and operational approaches.

What Options Do Affected Workers Have?

The 750 workers affected by BHP's cuts face various transition paths depending on their skills, experience, and personal circumstances.

Redeployment Possibilities

• Potential transfers to other BHP operations outside Queensland

• Opportunities within other mining companies still expanding operations

• Transition to mining services and contractor roles

• Skills application in adjacent industries (construction, infrastructure, etc.)

Support and Transition Programs

BHP has indicated it will provide:

• Severance packages for affected employees

• Career transition support services

• Retraining opportunities where applicable

• Extended notice periods to facilitate job searches

FAQ: BHP Queensland Job Cuts

When will the BHP job cuts take effect?

The 750 job cuts will be implemented in stages, with the first phase beginning in November 2025 when the Saraji South coal mine is mothballed. The complete workforce reduction is expected to be finalized by early 2026.

Which specific BHP sites in Queensland are affected?

While BHP hasn't provided a complete breakdown by site, the cuts will primarily impact operations within the BHP Mitsubishi Alliance (BMA) in Queensland's Bowen Basin. The Saraji South mine will see significant reductions as it moves into care and maintenance.

Is BHP planning similar job cuts in other regions?

BHP has not announced comparable workforce reductions in other regions. The Queensland cuts are specifically tied to the combination of the state's royalty regime and current coal price conditions. Operations in Western Australia and South Australia are not currently facing similar restructuring.

How do these cuts compare to BHP's total workforce?

The 750 positions represent approximately 10% of BHP's Queensland coal workforce but a much smaller percentage of BHP's global workforce of over 80,000 employees. The cuts are significant for the specific region but moderate in the context of BHP's overall operations.

What is BHP's long-term strategy for its Queensland coal business?

BHP has indicated it will maintain existing operations but not invest in growth projects under the current royalty regime. The company appears to be shifting toward a maintenance strategy rather than expansion, focusing on optimizing current assets while avoiding major new capital commitments in Queensland coal.

Further Exploration

Readers interested in learning more about the Australian mining industry and BHP's operations can also explore related educational content about BHP's recent operational decisions and their market implications. Industry publications and financial news sources provide ongoing coverage of developments in Queensland's coal sector and the broader impacts of regulatory changes on mining investment.

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