Attendees at last week’s Bowen Basin Mining Club luncheon heard a frank assessment of the cost pressures facing Queensland’s coal sector, with BMA Head of Operations Mariette Bylsma calling on industry to unite in advocating for policy change.

Ms Bylsma, who leads operations across BHP Mitsubishi Alliance’s network of metallurgical coal mines, port and rail in the Bowen Basin, addressed the February luncheon in Mackay with an update on BMA’s strategic direction amid what she described as an increasingly challenging operating environment.

Royalties impacting investment decisions

Ms Bylsma said Queensland’s coal sector is operating in one of the most challenging cost environments in the world.

“Queensland continues to have one of the highest royalty regimes globally, making our state less competitive and less attractive for future investment. To put it in perspective in FY25 BMA had an effective tax rate of 67%, returned 1% on capital employed, and paid around eight times more in royalties than we made in profit.

“Let me convert this into simple terms: What would your household budget look like if nearly 70 cents in every dollar is paid in tax? If your business’ rent went up to eight times what you make in profit, would you keep operating?

“While it’s difficult to invest in any further growth at BMA due to ongoing negative impacts of the government’s extreme royalty rates, the sector has shown a real commitment to the communities we are in through partnerships, investment in critical infrastructure and contributions.”

Industry advocacy essential at every level

Ms Bylsma called on the 220 people in the room to add their voices to initiatives like the Resource Industry Network’s Regions before Royalties campaign, emphasising that every voice matters in advocating for a fairer outcome.

“That petition calls for fairer, more competitive royalty settings for Queensland because sustainable investment means sustainable jobs, local business, and thriving regions. So please if you haven’t already, take a moment to add your name. Every signature counts, and together our voices carry weight.”

Unchanging safety and operational focus

Despite the challenging environment, Ms Bylsma reinforced that safety remains BMA’s first priority.

“Our priority on site is always safety. Nothing is more important to us than our people going to home to their loved ones. Our contractors told us that we’re all aligned with moving beyond compliance toward a genuine culture of care to improve our safety performance. 

“Part of this shift in our safety culture has been the roll out our Safety Starts with Me program across all levels of our workforce, including contractors at many of our sites. It’s designed to help everyone connect to their personal “why” — why we want to stay safe at work and at home.

“Each site has been working to tailor its approach to meaningfully shift our safety culture and include our contracting partners. So far, we’ve had 2,600 contractors through the program with many green shoots showing how the values of care, curiosity and humility are steering our progress toward a safer, better site.”

Strategic partnerships and community contribution

Ms Bylsma said in the last financial year, BMA spent around $6.4 billion with suppliers, supporting thousands of jobs across the Bowen Basin and the broader Queensland economy.

“Strong partnerships are central to the role BMA plays in delivering steelmaking coal – helping us build a better world right here from Queensland. Our recently released Community Contribution Report celebrates the people and partnerships behind these achievements, showcasing the real stories, and the lived benefits for local communities. The contribution report isn’t just a list of numbers, it tells a story about how BMA and its partners co-invest in regional futures. That shared investment underpins not just the community wellbeing, but a resilient, competitive mining industry that we all rely on.”

Future capabilities and investment

Bowen Basin Mining Club Director Jodie Currie said the frank discussion reflected the critical juncture facing Queensland’s mining sector.

“The people attending our luncheons represent the full mining value chain – from major producers to contractors, suppliers and service providers. When Mariette talks about needing competitive policy settings to secure investment, that message resonates across every business that depends on a strong mining sector. Queensland has world-class resources and world-class people. Now we need to look towards future policy settings that allow the industry to thrive and continue driving economic prosperity for Queensland and its communities.”

The next BBMC luncheon will be held on Thursday 26 March in Mackay, featuring Stanmore Resources.

Tickets are available via www.bbminingclub.com