Australia's biggest mining company will cut hundreds of jobs and mothball one of its oldest sites, after claiming the state-based business has reached a "crisis point".

About 750 jobs will be axed across Queensland and the Saraji South mine in the Bowen Basin will be placed into care and maintenance from November.

The BHP Mitsubishi Alliance said while the 50-50 joint venture company didn't want to see operations paused or jobs lost, the state's coal royalty scheme was causing issues.

"These are necessary decisions in the face of the combined impact of the Queensland government's unsustainable coal royalties and market conditions," alliance asset president Adam Lancy said in a statement on Wednesday.

"The simple fact is the Queensland coal industry is approaching a crisis point."

Quee

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