BHP blames ‘coal tax’ for job layoffs. But there’s obvious reasons coalmines aren’t as profitable anymore | Australia news

The large miners of Australia are not against a political struggle.

Think of the biggest mining of all of them: BHP.

In 2010, he fought violence against super profit tax and helped to drop a prime minister. In 2017, a party leader BHP, a party leader BHP, defended the increase in mining rental fees in Western Australia.

And since 2022, the great miner Queensland has been supported by the liberal national government, which was brought by Emek to the renewed copyright plan.

On Wednesday, BHP increased its decision to suspend the operations in the Southern Coal Mine in the Bowen basin with its joint venture partner Mitsubishi, accusing its decision to “sustain its” copyrights and market conditions in order to cut 750 roles throughout the province.

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The Grand Miner said that the BHP Futurefit Academy in Mackay, a training facility that educates new miners because of the “Sustainer on our business returns”, will also carry out a strategic examination of the BHP Futurefit Academy.

Shortly after the announcement, the other two miners operating in Queensland, Anglo American and Qcoal revealed business cuts.

Not only copyright decisions.

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The BHP Mitsubishi Alliance (BMA) runs five -smelling coal substances with most outdoor operations in Queensland’s Bowen Basin. The smelly coal, also known as metallurgical or met coal, is different from thermal coal used in heating, a enterprise with BHP.

The fact that coal mines in Queensland are not as profitable as before, most of them have nothing to do with the state -layered royalties.

As miners dig deeper to the world, production costs increase. This receives more fuel and causes expensive wear and wear in equipment.

At the same time, workers’ wages and associated labor costs have increased in a regular sector that has regular skill scarcity.

“There is a cost problem – and copyrights are one of these elements – but they are definitely not the main element, or he says. Energy Economy and Financial Analysis Institute.

“They also focused on taking volume at any cost. When the prices were good and they wanted to sell as much coal as possible, they expanded with little thoughts on costs.”

Coal managers have recently emerged from a period of decline marked with Russia’s major price increases after the occupation of Ukraine. ÇokCing Coal Prices rose to over $ 600 in 2022, but since then it has been normalized below $200.

In 2022, as the prices rose, then the labor government brought three new copyright layers to capture a larger portion of the reserve produced during the commodity price increases. The basic rates remain the same when prices are lower.

The schema agites mines, because it creates an ideological conflict between the welding sector and those who believe that the mineral reserve should be divided more equally, and reduces the excesses they can gain during the explosion times, but eliminates it in any way.

Gorringe, Queensland’s smelly coal manufacturers since 2018 has increased by 50% unit cash costs, which is an important profitability metropolitan.

According to the analysis, royalties actually represent a lower percentage of cost bases in 2025 than before the pandemum.

Coal ‘Tax’

The ideological division is evident in the defining BHP’s copyrights as a “coal tax” of the Queensland Government.

In Australia, state governments have minerals on the ground. Miners pay a copyright to access them; They’re not taxes.

If the resources sector convinces that general public miners need to pay a lower ratio for a public resource, it will be the final sign of a successful lobbying campaign.

The idea that the state bag can get a higher rate when there is a price increase is particularly sensitive to coal buyers because in a sector that doesn’t have much explosion.

“The structural decline in one of the largest fossil fuel export commodities in Australia is not the Queensland’s nation -leader royalty plan, but the factors that direct these investment and business decisions,“ he says.

Although the role of coal in steel production will be supported by cleaner alternatives, the BHP argues that it is “indispensable for the predictable future”.

After the commodity price explosions decreased, miners typically focused on reducing some jobs and production costs;

Some projects may not be suitable outside the explosion times.

To be sure, Queensland’s royal regime is a cost that miners need to affect the expected labor needs, but it is not the primary trigger for business cuts in a decline.

Considering that the decision to associate BHP’s copyright scheme with the “strategic examination of the Mackay training facility with the“ strategic examination ,, there is a special pain, considering that it seems like an ultimatom to bring the state government to the negotiation table.

BHP once again showed that he did not avoid a political struggle.