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 Warns Queensland’s ’67 Percent’ Coal Tax Making New Investment Unfeasible

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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