BMA announces 750 job cuts linked to Queensland royalties

Core Viewpoint - BHP Mitsubishi Alliance (BMA) plans to eliminate 750 jobs in Queensland due to high coal royalties imposed by the state government and is placing its Saraji South mine into care and maintenance, affecting around 72 employees [1][4]. Group 1: Job Reductions and Impact - The job cuts will affect corporate and support roles across various segments, including rail ports and coal operations, with the downsizing process having begun several months ago [2]. - Current trainees at BMA's FutureFit Academy will receive assistance in finding alternative employment within BHP [4]. Group 2: Financial Context - BMA has reported significant financial contributions to the Queensland Government, exceeding A$4 billion (approximately $2.67 billion) in the 2024 financial year, along with around A$8.1 billion to suppliers [5]. - The royalties are based on revenue rather than profits, impacting BMA's financial performance [5]. Group 3: Market Conditions and Company Performance - BHP recorded its lowest full-year earnings in five years, with underlying profits dropping by 26% to $15.7 billion, influenced by declining profits and increased royalties [6]. - The company sold its Daunia and Blackwater mines to Whitehaven for A$2 billion due to these financial pressures [6].