BHP shares tumble as it cuts 750 coal mining jobs
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More news: BHP shares were down in afternoon trade after the diversified miner said 750 jobs would be cut from Queensland coal operations and its Saraji South mine would shut in November.
At 1:25pm AEST, shares in BHP had dipped 1.2% to $40.28.
Meanwhile, rival coal miners Whitehaven Coal (+5.99%) and Yancoal (+3.51%) were among the biggest gainers on the ASX 200. New Hope (-6.55%) shares reversed gains made on Tuesday after releasing its FY25 results.
BHP to cut 750 Qld jobs on low coal prices, high royalties
The news: Diversified mining giant BHP will cut 750 jobs as it suspends low-margin coal mining operations in Queensland, citing subdued commodity prices and what it calls the “unsustainable impact” of the state government’s royalties.
The numbers: In FY25, BHP paid almost eight times more in royalties than it made in profit — about $1.64 billion compared with net profit after tax of $206 million.
The context: The BHP Mitsubishi Alliance (BMA) coal joint venture will shutter the Saraji South mine, part of the Saraji Mine Complex, in November 2025 for a “period of care and maintenance” amid low-margin operations.
BHP’s mining skills training facility, the FutureFit Academy in Mackay, will also be put under review.
Current students are expected to complete their training and transition into permanent BHP roles regardless of the review’s outcome.
The FutureFit Academy in Western Australia will not be affected.
What they said: “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,” BHP MItsubishi Alliance asset president Adam Lancey said.
“The simple fact is the Queensland coal industry is approaching a crisis point. This is now having real impacts on regional jobs, communities and small businesses.”
The source: BHP media statement
