BHP (ASX:BHP) share price in focus as 750 jobs cut at Australian mine

Core Viewpoint - BHP Group Ltd is cutting 750 jobs at its Saraji South coal mine in Queensland due to the impact of high coal royalties and challenging market conditions, which has raised concerns about the sustainability of the Queensland coal industry [1][3][4]. Group 1: Job Cuts and Mine Closure - 750 jobs will be cut at the Saraji South mine, a joint venture between BHP and Mitsubishi Development [2]. - The Saraji South mine, opened in 1974, is one of Australia's largest coal mines by recoverable reserves and will be mothballed starting in November [2]. Group 2: Impact of Coal Royalties - Queensland's coal royalties are structured in three tiers: 20% at $175 per tonne, 30% at $225 per tonne, and 40% if prices exceed $300 per tonne, contributing to the decision to cut jobs [3]. - BHP's asset president indicated that the company did not want to cut jobs but had to make necessary decisions due to unsustainable coal royalties and market conditions, suggesting a crisis point for the Queensland coal industry [3]. Group 3: Broader Implications - The job cuts are expected to have real impacts on regional jobs, communities, and small businesses, creating uncertainty for affected individuals [4]. - Despite the job cuts, coal is not the primary earnings generator for BHP, as iron ore and copper contribute more significantly to profits [5]. Group 4: Investment Perspective - Current commodity prices do not appear low enough to attract investment interest in BHP, with a preference for other ASX dividend shares at this stage [6].