Core Viewpoint - BHP plans to close its Saraji South coal mine in Queensland and lay off approximately 750 workers due to weak coal prices and high royalties in the region [1][5]. Company Actions - The Saraji South mine, part of a joint venture with Mitsubishi Development Industry, will be shut down in November [2]. - BHP is also reviewing its FutureFit mining training academy in Mackay, which has drawn criticism from local officials [4]. Financial Context - BMA, the joint venture operating the Saraji mine, is facing unsustainable financial pressures, paying A$0.67 in royalties for every dollar earned in profit [3]. - BHP's shares fell by 1.1% to A$40.31, with a market capitalization of A$204.73 billion, reflecting a 12-month trading range of A$33.25 to A$46.23 [5]. Market Conditions - Steelmaking coal prices have dropped significantly, trading at $101.75 per ton, down about 40% from an average of $400 per ton earlier in 2023 [7]. - The Saraji Complex produced approximately 8.1 million metric tons of coal in the year leading up to June, indicating that the closure of Saraji South may have a minimal impact on overall production [8]. Industry Challenges - Other coal producers in Queensland are also struggling; for instance, Bowen Coking Coal announced plans to put its Burton Mine Complex into administration due to financial difficulties [9]. - The Queensland Resources Council has called for changes to the state's royalty rates, citing that current rates combined with low prices are making coal production "unviable" [10].