BHP will suspend operations and cut 750 jobs at a Queensland coking coal mine due to low prices and high state government royalties. The Saraji complex produced 8.2 million metric tons of coking coal in the year to June 2025. BHP and Mitsubishi Development made the decision to pause operations, citing market conditions and unsustainable coal royalties.

Queensland raised royalties in July 2022, affecting coal prices above A$175 a ton. Coking coal prices, which peaked at $600 a ton post-Ukraine invasion, now trade around $190. The Mining and Energy Union recently won a court ruling against BHP’s effort to delay pay rises under same-job same-pay regulations, benefiting around 1,800 contracted workers.

Union President Mitch Hughes criticized BHP for using coal workers in a battle with the Queensland Government over royalties. The pay rise for contracted workers could amount to A$20,000 to A$30,000 on top of an average coal salary of A$120,000 a year. BHP CEO Mike Henry expressed disappointment in the lack of industry consultation regarding the royalty increase.

Read more at Yahoo Finance: BHP to suspend operations, cut jobs at Australian coking coal mine