MELBOURNE, March 5, 2026, 16:54 AEDT
BHP Group Ltd’s coal joint venture told employees in a March 2 email, seen by Platts on March 4, that Queensland operations can’t “compete for investment”—returns are down to zero, the message said, pointing to steep royalties, higher costs, and unstable coal prices. The company is shutting down its FutureFit Academy in Mackay in its current form, planning to consolidate training out in Western Australia instead. Chair Ross McEwan spelled it out: “zero investment into Queensland.” For Queensland Resources Council chief Janette Hewson, coal royalties remain among the sector’s top worries. S&P Global
BHP’s half-year numbers are in: the BHP Mitsubishi Alliance (BMA) posted an underlying return on capital employed of 0% for the six months to Dec. 31, 2025 — essentially flat profit against the capital put to work. Revenue from the unit landed at US$1.667 billion, with underlying EBITDA coming in at US$0.3 billion, a cash-based profit figure. The miner has also put Saraji South on the list for care and maintenance — a temporary shutdown — in the second quarter of fiscal 2026, with around 750 jobs set to be cut across Queensland.
Central Queensland gets hit by the move, as the royalty hike from 2022 keeps tensions high between miners and the state government. Resource Industry Network’s Dean Kirkwood called shutting the Mackay academy a clear blow for the area. State resources minister Dale Last, for his part, insisted Queensland remains “open for business,” with coal demand described as robust. According to a BHP spokesman, students already enrolled will be allowed to complete their training and step into permanent jobs once qualified. iQ Industry Queensland
According to Mining Weekly via Bloomberg, getting financing and permits for new coal projects in Australia has become tougher, with rising royalties and costs piling on more pressure. The report highlighted that Queensland operators like QCoal and Bowen Coking Coal are feeling the strain, and Vitrinite entered administration this month.
BHP produces metallurgical coal—essential for steelmaking in blast furnaces—from five sites across the Bowen Basin in Queensland, exporting the output via the Hay Point Coal Terminal near Mackay. According to BHP, the terminal’s annual capacity tops 55 million tonnes.
FutureFit Academy, BHP’s customised training hub in both Mackay and Perth, brings trainees on as permanent employees right from the start, according to the company. But only the Mackay campus runs the production-operator pathway, BHP’s careers page notes.
Back in February, chief executive Mike Henry made it clear: BHP is chasing “growth in copper and potash.” For the half, copper pulled in 51% of underlying EBITDA. Henry singled out the Jansen project, along with early-stage sites like Vicuña and Resolution, all sitting in BHP’s development pipeline. BHP
BHP hasn’t locked itself in. Spot prices for metallurgical coal snap back fast, and if Queensland eases up on royalties — or BHP digs out bigger cost savings — returns get a boost. That could draw out investment in the state beyond what the workforce is currently bracing for.
