BHP has announced it will cut 750 jobs in its Queensland coal division, citing weak coal prices and high royalty rates in the state as the primary drivers. The company, one of the world’s largest diversified miners, produces a range of commodities, including iron ore, coal, copper, and petroleum. BHP operates globally, with a significant presence in Australia and the Americas.
The Saraji South mine is slated to be mothballed in November as part of the restructuring. BHP also indicated it is considering the closure of its “FutureFit” academy, a training facility focused on integrating new workers, especially women, into the mining sector. The potential closure of the academy highlights the breadth of the cost-cutting measures being undertaken.
BHP CEO Mike Henry had previously flagged the vulnerability of the Queensland division to potential mine closures and job reductions during the company’s financial results announcement in August. The current situation follows the Queensland Labor government’s decision to increase royalty rates in 2022, a policy that the current Liberal National government has chosen not to reverse.
