BHP Reportedly To Halt Saraji South Mine Operations, Cut 750 Jobs Amid Royalty Pressure

(RTTNews) - According to several media reports, BHP Group Ltd (BHP.AX), in partnership with Mitsubishi Development, plans to suspend operations at the Saraji South mine in Queensland, Australia, starting November 2025. The move reportedly stems from persistently low coal prices and high state government royalties, which have significantly eroded profitability.

The reports noted that the Saraji South site, part of the larger Saraji Mine Complex operated by the BHP Mitsubishi Alliance (BMA), will enter a phase of care and maintenance. This strategic move will result in the loss of approximately 750 jobs across BMA's Queensland operations.

Despite strong medium-term demand for hard coking coal—a key input in steel production—BHP reportedly stated that continuing operations in lower-margin zones of the mine is no longer viable under current economic conditions. The company emphasized that the decision was driven by sustainability concerns and the need to optimize its asset portfolio.

Located near Dysart, Saraji South has long been a cornerstone of Queensland's coal industry. However, the mounting financial strain from state-imposed royalties has forced BHP and its joint venture partner Mitsubishi Corp (8058.T) to reassess the mine's future. The mothballing of Saraji South underscores the broader challenges facing coal producers in high-cost jurisdictions.