Australia’s National Environmental Protection Agency (NEPA) has approved the BHP-Mitsubishi Alliance’s (BMA) plan to extend the life of its Saraji coking coal complex to 2055 by expanding a coal pit.
“[BMA’s continuation project] supports existing operations at Saraji,” a company spokesperson told Lithos on 3 September. “The Commonwealth’s environmental approval enables production as planned,” they said.
“[Saraji] has been contributing to [central Queensland’s] regional economy … for 54 years,” the spokesperson added.
BMA produced 7.9 million tonnes of mostly coking coal at Saraji over the 2025-26 fiscal year, down 3% from 2024-25, largely because it paused production at one part of the complex – known as Saraji South – in November 2025. The joint venture moved Saraji South into care and maintenance because of low coal prices and high mineral royalty rates, according to BHP.
Since July 2022, Queensland-based coal producers have faced marginal royalty rates ranging from 7% to 40%, depending on coal sales prices, according to the Queensland Revenue Office. They previously faced marginal royalty rates ranging from 7% to 15%.
BHP does not plan to invest in new Queensland coal mines, but may invest in existing mines, because of the state’s royalty regime. “There is no intent for us to invest more growth capital in [BMA] … given the higher royalties, and we’ll instead prioritise growth capital into other parts of [our] portfolio,” BHP Chief Executive Mike Henry told investors in August 2025.
The Australian Conservation Foundation (ACF) and the Climate Council have opposed NEPA’s approval because of Saraji’s climate and pollution impacts.
“The International Energy Agency was clear in 2023 – no new coal and gas projects are needed to meet declining [coal] demand ... A coal extension, whether it’s thermal or coking coal, in 2026 is incompatible with a safe planet,” ACF National Climate Policy Advisor Annika Reynolds told Lithos.
“Every tonne of climate pollution is doing us damage today. The Government should stop approving new coal and gas, and strengthen our industrial pollution law so every new, expanded and extended project answers for all of its pollution from day one,” Climate Council Chief Executive Amanda McKenzie said.
By Avinash Govind