BHP Billiton has become the first miner since the global financial crisis to close an Australian coalmine because it was losing money, escalating a long-running battle with unions and threatening 1400 jobs.
The decision, announced yesterday, to close the Norwich Park mine in central Queensland has prompted warnings that the coal sector is struggling under a barrage of new taxes, potential royalty rises and other cost pressures.
The closure comes as unions led by the Construction Forestry Mining and Energy Union plan to start a previously called 36-hour strike at seven BHP-run mines, including Norwich Park, tonight.
BHP's decision has shocked unions and puts at risk the future of the nearby town of Dysart, which was established in 1973 as construction on the mine began, and threatens up to 1400 jobs.
The 16-month battle between the BHP Billiton Mitsubishi Alliance (BMA) and three mining unions in Queensland is more about conditions and operational issues than pay, and has been described by the miner as an attack on its right to manage its mines.
The Australian
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