BREAKING: Job losses are escalating in Queensland’s coal mining sector as QCoal announces the closure of one underground site at its Cook Colliery mine, impacting nearly half of the 170 workers employed in the region. The shutdown, set for early October 2023, comes just days after Anglo American and BHP Mitsubishi Alliance confirmed a staggering total of 750 job cuts across their operations.
This latest wave of layoffs is attributed to a controversial coal royalties scheme, forcing companies to pay millions despite operating at a loss. QCoal has stated that it contributed $25 million in royalties since its reopening in March 2022, while never achieving profitability. A spokesperson described the ongoing financial strain, citing “high production costs, high taxes and royalties, and low coal prices” as unsustainable for Cook Colliery.
The situation has become urgent, with industry leaders warning that the state coal industry is at “crisis point.” BHP Mitsubishi Alliance’s Adam Lancey revealed that under the current regime, the company is paying about eight times more in royalties than it earns in profit. This alarming trend has raised significant concerns among workers and advocates for reform.
Calls for action are intensifying. David Littleproud, leader of the Nationals, urged the Queensland government to reevaluate its coal excise, highlighting the need for a sustainable mining industry. “There is a need for a review of the royalty tax if we want to have a sustainable mining industry,” he stated.
Despite the mounting pressure, the Queensland Liberal National government remains steadfast, refusing to alter the existing progressive royalty regime. Premier David Crisafulli is scheduled to meet with resources sector representatives next week, but this meeting was reportedly planned prior to the recent layoffs and criticisms surrounding the royalty scheme.
Opposition Leader Steven Miles has voiced skepticism, suggesting that mining companies may be using these layoffs to coerce the government into concessions on royalties. “This is using workers and their livelihoods as bargaining chips,” he accused, indicating that expectations from coal companies are high for favorable outcomes in the upcoming discussions.
The impact of these layoffs extends beyond the immediate loss of jobs. The local community in Blackwater is facing uncertainty as families rely on these positions for their livelihoods. The emotional toll on workers and their families is palpable, as the situation grows increasingly dire.
The coal industry’s tumultuous landscape has evolved since the former Labor government introduced a tiered royalties system in 2022, designed to capitalize on high coal prices while providing relief during downturns. However, current market conditions have drastically changed, leading to a decline in royalties revenue from $14.8 billion in 2022-23 to an anticipated $6.1 billion in the latest budget.
As the situation develops, all eyes are on the Queensland government and the upcoming meeting with industry leaders. Workers, families, and stakeholders are anxiously awaiting any signs of support or reform that could alleviate the pressures facing the coal mining sector.
Stay tuned for further updates as this story unfolds.
