BREAKING: QCoal has just announced significant job cuts at its Cook Colliery in central Queensland, impacting around 85 workers as the company prepares to shutter one of its two underground sites. This urgent move follows a string of layoffs across the coal mining sector, with major players like Anglo American and BHP Mitsubishi Alliance also confirming reductions, amounting to approximately 1,000 positions in total.
The announcement, made earlier today, highlights the mounting pressures facing Australia’s coal industry, attributed to high production costs and an “unsustainable” royalties scheme implemented by the Queensland government. A spokesperson for QCoal stated, “Unfortunately, Cook Colliery has been affected by high production costs, high taxes and royalties, and low coal prices, making its ongoing operation at current levels unsustainable.” Alarmingly, the mine has contributed $25 million in royalties since re-opening in March 2022, despite never turning a profit.
This closure is set to take effect in early October 2023, intensifying concerns within the community of Blackwater, where the mine operates. The impact on families and local economies is profound, as many workers now face uncertain futures.
The layoffs come on the heels of BHP Mitsubishi Alliance’s decision to cut 750 jobs this week, citing the government’s royalty regime as a primary factor. They argue that the current financial model is pushing the coal industry towards a “crisis point.” With Queensland’s royalty revenue plummeting from $14.8 billion to $6.1 billion in the latest budget cycle, calls for reform are growing louder.
David Littleproud, leader of the Nationals, has urged the Queensland government to review the coal excise, stating, “There is a need for a review of the royalty tax if we want to have a sustainable mining industry.” However, the Liberal National government, led by Premier David Crisafulli, has so far refused to modify the progressive royalty framework, adhering to a promise made in the lead-up to the 2024 election.
Next week, Premier Crisafulli is scheduled to meet with mining sector representatives, but critics suspect this meeting was planned prior to the layoffs and may not lead to the necessary changes. Opposition Leader Steven Miles has accused the government of allowing mining companies to leverage workers’ livelihoods as bargaining chips, suggesting the possibility of royalty reductions that would undermine previous commitments.
As the coal market continues to face turmoil, the ramifications of these job cuts could resonate far beyond the immediate impact on employment. The future of Queensland’s coal industry remains precarious, with workers and communities bracing for further developments.
With the situation evolving rapidly, stakeholders are watching closely to see how the Queensland government responds to these pressing concerns and whether reforms to the coal royalties system will be implemented in light of the growing crisis.
