Coalmines recently marked for closure in Queensland were previously shuttered due to being uneconomic, new analysis shows, undermining claims from the resources companies that they are being forced to close by the state’s royalty regime.
The “zombie mines” were often restarted in anticipation of windfall profits during coal price spikes, which occurred when Russia invaded Ukraine in early 2022.
As coal prices returned to normal levels, the projects have once again become unfeasible, according to the Institute for Energy Economics and Financial Analysis (Ieefa).
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The findings come before a meeting between coal sector representatives, backed by BHP, and state government officials amid a campaign by miners to blame job losses on Queensland’s tiered royalty