BHP Billiton Mitsubishi Alliance (BMA) intends to cease production at Norwich Park coal mine indefinitely. Norwich Park has been losing money for several months. This situation has come about as a result of a combination of lower production, a significant increase in costs and lower coal prices. Michael Roche, Chief Executive, Queensland Resources Council said it is “a salutary reminder to politicians, employees, communities and a multitude of interest groups that it is simply not possible to keep loading more and more costs onto mining operations without consequences.
The decision to cease production follows a seven week review of the mine’s viability. The review could not establish any immediate remedies that would allow the operation to sustainably return to profitability.

BMA Asset President, Stephen Dumble said, “This decision was not made lightly. However, the impact of last year’s floods, combined with lower coal prices and high costs, has resulted in an operation that is not currently viable.

“While recent industrial action has had an impact on production, the mine has been unprofitable for some months. As a result, we have had to take urgent steps to both stop the losses and find the best way to secure the operation’s longer term future. Importantly, this decision on Norwich Park mine is not reflective of the broader quality of our world class Queensland Coal operations.”

Dumble said the company would now focus on implementing measures that would enable Norwich Park to operate as a sustainably profitable, low cost mine.

“Until we find viable solutions for the future of the mine, we will not re-start operations. We understand that this decision will have a significant impact on our employees, their families and the Dysart community, and we are committed to supporting them during this period,” he said.

BMA will be aiming to maximise redeployment opportunities for Norwich Park employees to Saraji mine to enable, where possible, those employees and families to remain living in Dysart.

Roche also said “The cessation of production at BMA’s Norwich Park coal mine is clearly a concerning development for the affected workers, their families and the Dysart community. It will also come at a significant cost to the state budget through potentially tens of millions of dollars in foregone royalties.

“The situation at this Bowen Basin mine is It is also a stark example of the lasting legacy for the state’s coal mines of the 2010-11 wet season.”