500 Jobs at Risk as Queensland’s Punitive Royalty Regime Pushes Another Mine Towards Closure

The Burton mine opened in 2022 with a projected 10-year mine life, and annual production of two million tonnes of coal, providing vital jobs and economic growth to regional Queensland. But the combination of falling coal prices and the world’s highest royalty rates now threatens the livelihoods of 500 workers.

In a statement to the Australian Stock Exchange (ASX), the mine’s owner, Bowen Coking Coal, warned:

“If immediate funding efforts are unsuccessful and/or coal market pricing dynamics do not improve, Bowen may seek to temporarily pause operations at part, or all, of the Burton Mine Complex.”

Coal Australia CEO Stuart Bocking said the Crisafulli Government must work with Queensland’s coal mining communities to keep mines open and allow new investment to flow into the state, to prevent other Queensland mines facing a similar fate.

“Former Treasurer Cameron Dick has set up Queensland to fail with a politically inspired cash grab that has left regional coal jobs reeling under the weight of the most punitive royalty regime anywhere in the world.”

“Since the 2022 royalty hikes, we have already seen the closure of the Bluff mine at a cost of 300 jobs, the ceasing of operations at Wilkie Creek and Mavis Downs mines, the cancellation of the Valeria coal project with 1,250 jobs that never eventuated, and even BHP has paused new investment in the Queensland coal sector – now the Burton mine faces an uncertain future”, Mr Bocking said.

Coal Australia stands ready to work with the Crisafulli Government to right Labor’s wrongs in Queensland – a more sustainable royalty regime will ensure coal miners pay their fair share, while supporting and growing job opportunities in regional Queensland, and kickstarting new investment in the state’s coal sector.

“We urge the Queensland government to act now before other mine operators face similar decisions to those at Burton. Coal mining communities deserve stability, and miners should have certainty that their hard work won’t be punished by uncompetitive policy settings.”