QCoal has begun consultation with its workforce after announcing plans to close one of two underground units at the Cook Colliery in Queensland’s Bowen Basin.
The mine, operated by Core Crew, employs about 170 workers. Core Crew will consult with employees over the next two weeks, with outcomes potentially including redundancies or changes to existing roles.
QCoal said the move was “a measured reaction to increased production costs and market pressures”.
“Unfortunately, Cook Colliery has been affected by high production costs, high taxes and royalties, and low coal prices. Its ongoing operation at current levels is unsustainable,” a QCoal spokesman said.
QCoal purchased the mine in 2020 and reopened it in 2022. Since then, Cook Colliery has paid $25 million in royalties to the Queensland Government despite never turning a profit.
The announcement follows similar cutbacks by BHP Mitsubishi Alliance (BMA) and Anglo American, both of which cited Queensland’s coal royalty structure. BMA flagged up to 750 job cuts, while Anglo American expects 200–300.
In a LinkedIn post, BMA asset president Adam Lancey said state coal taxes and royalties had forced its hand.
“The uncertainty this creates for our people and our communities is not taken lightly, and we will do everything we can to support them,” he said. “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.”
In 2022, the Queensland Government introduced three new progressive royalty tiers on top of the existing regime: 20 per cent for coal prices above $175/t, 30 per cent above $225/t, and 40 per cent above $300/t.
These tiers were reaffirmed in September 2024 with the passage of the Progressive Coal Royalty Protection (Keep it in the Bank) Bill, which amended the royalty regime under the Mineral Resources Act 1989.
Deputy Premier and Treasurer Cameron Dick defended the royalty structure.
“Queenslanders deserve a fair share from the coal resources that rightfully belong to them, and our progressive coal royalty tiers are delivering just that,” he said in 2024.
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