The BHP Mitsubishi Alliance (BMA) has also announced that it will pause its operations at Saraji South, one of the largest mines in Australia located in the Bowen Basin, starting in November. This will mark the second time the site has been closed.

It will review its own FutureFit Academy in Mackay, a training centre that helps young people enter the industry.

BHP fighting government on second front

As BHP deals with the royalty issues in Queensland, the company is also working to stop the federal government from implementing a cashflow tax recommended by the Productivity Commission in a preliminary report.

The commission’s recommendation includes a five percent cashflow tax for all companies and a 20 percent corporate tax reduction for small to medium-sized businesses.

BHP responded to the proposal this week, saying Australia’s largest companies would “ultimately bear a higher effective tax burden”.

“This is counterproductive,” it said.

BHP said the cashflow tax would be a “disincentive” and threatened to pull investment from Australia.

In response, BHP stated, “We are proud to be an Australian business and wish to increase our investments here. However, the reality is that capital moves globally, making our Australian projects less competitive for investment.”

“Inevitably, this will mean more of our available capital will flow overseas rather than into projects in Australia.”