BHP Mitsubishi Alliance (BMA) will cut about 750 jobs across its operations, blaming the impact of high royalties imposed by the Queensland government, reported ABC News. The miner also said it will mothball its Saraji South mine at Dysart in November.
The Mining and Energy Union said it understood the job losses would come from corporate and support roles across all of BMA’s Queensland business, including rail ports and coal. It said the process of cutting workers began months ago. About 72 miners at Saraji South are expected to be affected when it shuts down for care and maintenance.
BMA Asset President Adam Lancey said in a statement that the company did not want to see 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.”
Under the scheme, introduced by the former Labor government and supported by the current Liberal government, mining companies pay a higher percentage of royalties when the price of coal increases: 20% at $175 per tonne, 30% at $225/t and 40% when prices topped $300/t.
Lancey said while the progressive royalties scheme should have meant the company was benefiting from big profits when paying more to the state, the increasing cost of doing business meant that was no longer the case.
Separately, Anglo American confirmed roles have been cut at its Brisbane office and in the Bowen Basin. Although the miner declined to state the number of redundancies, Isaac Regional Council said more than 200 positions were involved.
Ben Mansour, vice president of People and Corporate Relations at Anglo American Australia, said workforce changes were to “ensure the long-term sustainability of our business.”
“These changes are essential to secure the future of our steelmaking coal operations in Central Queensland,” he said. “Our focus is on supporting safe, core operations and simplifying our business to adapt to ongoing market pressures – including lower coal prices and rising costs.”
Source: ABC News