BHP Warns Queensland’s ’67 Percent’ Coal Tax Making New Investment Unfeasible
In September 2025, BHP blamed the royalty regime for a decision to cut 750 jobs across its Queensland coal operations.
BHP’s CEO stated that Queensland’s royalty regime has made new investments in the state unfeasible. The company paid $1.8 billion in state royalties on its five coking coal mines in central Queensland. According to BHP, the sliding-scale royalty regime, introduced in 2022, results in a 67 percent tax rate on its business when coking coal prices are high, rendering new investment unsustainable.
- BHP’s CEO says Queensland’s royalty regime makes new investments unfeasible.
- BHP paid $1.8 billion in state royalties on its five coking coalmines in central Queensland.
- Queensland’s sliding-scale royalty regime, introduced in 2022, results in a 67 percent tax rate when coking coal prices are high.
- This regime makes new investment in the state unsustainable, according to BHP’s CEO.
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