What is the main reason BHP and Mitsubishi are reviewing their Queensland coal mines?

BHP and Mitsubishi Development Pty Ltd. have launched a review to rank the financial health of their coal mines and assets in Queensland due to concerns about the state’s royalty regime, which BHP has long claimed has crippled its coal business; the Queensland mines returned no profit to BHP in the six months to December 31, and BHP’s Chairman Ross McEwen declared there would be 'zero' new capital investment across the coal business in the state.

How has Queensland’s royalty system changed since 2022, and why does BHP oppose it?

In 2022, Queensland’s then-Labor government introduced a tiered royalty system based on revenue—not profit—taking 30% of revenue per ton when coal prices exceed A$225 and up to 40% when prices exceed A$300; BHP opposes it because it applies regardless of mine profitability, contributing to unsustainable low-margin operations, as evidenced by the closure of Saraji South mine and 750 job cuts last September.

BHP Begins Review to Rank Unprofitable Australian Coal Mines

Apr 19, 2026

BHP Group initiated a financial review of its Queensland coal mines amid unprofitability concerns linked to high state royalties. Management confirmed zero new capital investment in the state's coal business during the assessment.

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