Devastating Blow to Queensland’s Mining Community: QCOAL Announces Shock Closure of Half of Cook Colliery Operation
- One of two underground units at the central Queensland mine to shut down in early October, leaving up to 85 workers facing redundancy or changes to existing positions
- QCOAL blames soaring production costs, high taxes, and royalties, and low coal prices for the decision, which will come into effect after workforce consultation
- This is the third major mining company to announce job losses in Queensland’s Bowen Basin this week, following BHP Mitsubishi Alliance and Anglo American
The mining community in central Queensland has been left reeling after QCOAL announced the shock closure of half of its Cook Colliery operation. The decision, which will take effect in early October, is expected to result in redundancies for up to 85 workers or changes to existing positions.
In a statement, QCOAL cited market conditions, high production costs, and low coal prices as the reason for the closure. “Unfortunately, Cook Colliery has been affected by high production costs, high taxes and royalties, and low coal prices, and its ongoing operation at its current levels is unsustainable,” a company spokesperson said.
The mine, which produces both coking coal for steelmaking and thermal coal for energy, has had a troubled history. QCOAL purchased the mine from Bounty Mining in 2020 after it was forced into voluntary administration, and reopened the site in 2022.
The news comes just days after BHP Mitsubishi Alliance (BMA) announced the closure of Saraji South mine at Dysart, and Anglo American confirmed job losses at its Brisbane offices and across its Bowen Basin operations. Isaac Regional Council Mayor Kelly Vea Vea said the BMA and Anglo job cuts would cost about 1,020 jobs in total.
Federal LNP Member for Flynn, Colin Boyce, expressed extreme disappointment at the job cuts, calling on the state government to reassess the whole royalties tax regime. “I think that would be a start and a step in the right direction,” he said.
Queensland Mining Council chief executive officer Janette Hewson echoed those sentiments, saying the closure demonstrate the impact of the world’s highest royalty rates coupled with low prices and soaring production costs on the viability of Queensland operations.