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Employment Relations, Oil Mining Resources

BHP must stop using workers as pawns in royalties war: MEU

Mining and Energy Union 2 mins read

MEDIA ALERT: MEU Queensland President Mitch Hughes will address media at 11am today at the Mining and Energy Union Brisbane office, 61 Bowen Street, Spring Hill. 

 

MEDIA RELEASE: Workers at BHP’s Saraji South coal mine were shocked to be told early this morning that BHP would put the mine into care and maintenance in November, the Mining and Energy Union said today. 

The MEU is calling on BHP to be transparent with workers and consult immediately about their plans, rather than spread fear through the media. 

“BHP should stop using coal workers and communities as pawns in its fight with the Queensland Government over royalties,” said MEU Queensland President Mitch Hughes. 

“Workers need facts, certainty and security – not alarmism.” 

Regarding today’s announcement by BHP, the MEU understands: 

  • The 750 job cuts are predominantly corporate and support roles across BHP’s whole Queensland business, including rail, ports and coal – with most of the affected workers already informed. We understand this process has been ongoing for the last couple of months.  
  • At this stage there are 72 coal production jobs affected by the Saraji South announcement and BHP has committed to working with the MEU towards redeployment to adjoining Saraji mine, and other operations, where possible. 
  • Saraji South will stop coal production and be put into care and maintenance in November. 

The Saraji South mine near Dysart was formerly known as Norwich Park. It was previously mothballed by BHP in 2012 until being reopened as Saraji South in 2020, as part of the Saraji complex.

“It’s very disappointing to see BHP close a mine as soon as coal prices come off the boil,” said Mr Hughes.

“But they have form in turning this mine on and off to chase high coal prices, with no regard for the community or workforce impact.” 

Mr Hughes said BHP blaming job cut decisions on Queensland’s royalties regime was disingenuous - with the higher rates of royalties only kicking in when prices were very high. 

“Even with higher royalties, BHP profited immensely from the coal price spike of 2022-2023, which saw coking coal spot prices peak at over $900 a tonne. BHP is sulking that they had to share some of these windfall profits with Queenslanders. 

“BHP has been pursuing a divestment strategy in Queensland coal since before the new royalty rates were introduced in 2022. 

“Coal prices have come back to more normal levels, but to fear-monger about a ‘crisis’ in coal is misleading and frankly shameful behaviour from BHP. 

“Our high-quality coal belongs to all Queenslanders, not to BHP. If BHP want to focus on other parts of their business, they should get out of the way and let someone else operate these great central Queensland mines.” 

 

 


Contact details:

Jackie Woods 0414241483 

Rosie Wilson 0421808958

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