BHP Begins Review to Rank Unprofitable Australian Coal Mines

BHP and Mitsubishi Development have initiated a strategic review to assess the profitability of their Queensland coal mines, citing financial pressures from Australia’s royalty regime. The review will rank assets based on financial viability, potentially identifying underperforming mines for divestment, closure, or restructuring amid rising operational costs. Queensland’s coal royalty hikes—introduced in 2022—are a key concern, squeezing margins for miners already facing global demand fluctuations and energy transition pressures. The partnership, operating under the BHP-Mitsubishi Alliance (BMA), controls major metallurgical coal mines, making this review critical for regional industry stability and future investments. Analysts warn the outcome could accelerate mine closures, impacting local jobs and Queensland’s economy, while signaling broader challenges for Australia’s coal sector in a shifting energy landscape.