Dush Wimal

Resources has always delivered for Australia, providing the jobs, investment, exports and productivity gains that have helped underwrite our prosperity and the essential services upon which every Australian depends. But the conditions that delivered past success will not guarantee a bright future. That’s why the broad acceptance of the need to address Australia’s productivity problem is both timely and welcome. We need to refocus on the things which we know are going to unlock the productive capacity of the economy, let Australia play to its natural strengths, and enable national prosperity to continue. Situations as we’re seeing playing out in Queensland, where the coal industry is reaching a crisis point, are a clear example of the risks. Queensland has the resources, the expertise and the global reputation to build an economy that continues to deliver growth, opportunity and resilience. What’s missing, and indeed what’s needed, is the courage and vision to reset Queensland’s attractiveness as an investment destination. Putting in place fiscal settings that reward and encourage major investments being made in the state.  Amid all the uncertainty, one thing is clear... keeping the Bowen Basin competitive keeps Queensland in the game.

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The coal mining industry has been the backbone of regional Queensland for more than half a century.      And at BMA, we are proud to be part of this. As not only the largest employer in the region, but a key contributor to the local communities in which we operate.      We want this legacy to continue. The world needs steel and Queensland has the resource and expertise to deliver it for decades to come. However, when the settings and conditions are unsustainable, we must be prepared to act.      We’ve been very open about the challenges facing Queensland’s coal industry as a result of the Queensland Government’s coal taxes and royalties.      Under this regime, in FY2025, BMA:      - Had an effective tax and royalty rate of 67 per cent.     - Returned 1 per cent on capital employed.     - Paid approximately 8 times in royalties than what we made in profit.      Numbers like these aren’t sustainable and, while medium term demand for BMA’s premium hard coking coal is strong, options to pause lower margin areas of our operational footprint must now be considered.      Today I shared with our team we have made the difficult but necessary decision to remove roles in our workforce and transition our Saraji South operation into a period of care and maintenance. More broadly, BHP is also undertaking a strategic review of the FutureFit Academy in Mackay.      The uncertainty this creates for our people and our communities is not taken lightly, and we will do everything we can to support them.      The simple fact is the Queensland coal industry is approaching a crisis point. The royalty regime is having real impacts on regional jobs, communities and small businesses.      We have a responsibility to keep advocating for a fairer, more sustainable approach - one that allows Queensland to remain competitive, attract investment, and protect the livelihoods of the people who make this industry possible. 

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