Greenfield Underground Metallurgical Coal Mine Progresses Through Approvals
BHP Mitsubishi Alliance (BMA) has secured Queensland state environmental approval for the Saraji East coal mine expansion, a greenfield underground metallurgical coal mine in the Bowen Basin approximately 30 km north of Dysart. The project, first proposed in 2013, would extract up to 11 million tonnes of run-of-mine coal annually.
Project Specifications
- Annual production: Approximately 8 million tonnes of metallurgical coal per year for global steelmaking markets
- Mine life: Approximately 20 years
- Employment: Around 1,000 construction jobs and approximately 500 operational roles once in production
- Site area: 11,427 hectares around 170 km south-west of Mackay
- Water usage: Approximately 1,500 megalitres per year
Approval Context
The state environmental approval was granted by the Crisafulli government in June 2026 following assessment by the Queensland Department of Environment. However, the project remains contentious — BMA had previously stated in November 2025 that it would not invest in new developments in Queensland due to the state's "unsustainable royalty regime." The project would clear 136 hectares of koala habitat and generate an estimated 330 Mt of CO2 emissions over its 20-year life. Federal approval under the EPBC Act is still required.
BMA Production Performance
Meanwhile, BMA delivered its highest stripping volumes in five years during FY26, with total steelmaking coal production of 18.6 Mt (37.3 Mt on a 100% basis), up 3% year-on-year. FY27 guidance is 18.5-20.5 Mt (37-41 Mt on 100% basis), weighted to the second half. BMA also received environmental approval for the Caval Ridge Horse Pit Extension near Moranbah, reinforcing its commitment to long-term metallurgical coal investment across the Bowen Basin.
