A major coal development that promised to create 1,500 jobs in regional Queensland has been abandoned by one of Australia’s mining powerhouses, dealing a fresh blow to the state’s resources sector amid an intensifying dispute over government royalty policies.
The BHP Mitsubishi Alliance (BMA), one of Queensland’s dominant coal-mining operators, has officially withdrawn from the Saraji East Project, a 136-hectare development earmarked for the resource-rich Bowen Basin near Mackay in central Queensland.
The decision represents a significant setback for the region, with the project having secured state government approval and carrying expectations of generating approximately 1,000 construction positions and 500 permanent operational roles once fully developed.
The withdrawal comes as tensions continue to simmer between Queensland’s mining sector and the state government over the controversial mining royalty framework, which has become a flashpoint in the ongoing debate about resource taxation and industry competitiveness.
BMA’s retreat from the Saraji East development signals growing unease within the mining sector about the financial viability of new projects under the current royalty structure. The alliance, which represents a partnership between global mining giant BHP and Japanese conglomerate Mitsubishi, has been a cornerstone of Queensland’s coal industry for decades.
The Bowen Basin, where the now-cancelled project was located, remains one of Australia’s most significant coal-producing regions, contributing billions of dollars annually to both the state and national economies. The area has been a traditional stronghold for large-scale mining operations, making BMA’s decision to abandon the development all the more notable.
The scrapped project would have expanded the existing footprint of coal extraction in the region, with the 136-hectare site positioned to tap into proven coal reserves. The promised job creation had been welcomed by local communities and regional development advocates who continue to champion the resources sector as a vital economic driver.
Industry observers are closely watching whether other major mining companies will follow BMA’s lead in reassessing their Queensland development pipelines. The royalty dispute has created uncertainty across the sector, with companies weighing the long-term profitability of new ventures against evolving government revenue policies.
The standoff between the mining industry and Queensland authorities reflects broader national conversations about balancing resource development with government revenue generation, particularly as global energy markets continue to evolve and environmental considerations gain prominence in policy discussions.
For the Mackay region and surrounding communities, the loss of the Saraji East Project represents not just immediate job losses but also reduced economic activity that would have flowed from both the construction and operational phases of the development.
