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Bowen Basin Index

BMA Keeps Saraji East Project Alive as Queensland Royalty Debate Continues to Shape Bowen Basin Investment

BHP Mitsubishi Alliance continues preserving the Saraji East project near Dysart while Queensland's coal royalty debate influences future investment decisions across the Bowen Basin.
Saraji East mining project concept showing a large Bowen Basin coal mining operation near Dysart, Queensland.

The Saraji East Project remains one of the Bowen Basin’s most significant future mining developments as BHP Mitsubishi Alliance (BMA) continues preserving the project while broader debate around Queensland’s coal royalty regime influences future investment decisions.

Located near Dysart in Central Queensland, the proposed underground metallurgical coal mine has been progressing through approvals and environmental assessment processes for several years and remains a key long-term growth option within BMA’s Bowen Basin portfolio.

While no final investment decision has been announced, the project continues attracting attention from mining contractors, engineering firms, suppliers and regional businesses due to its potential scale and long-term economic impact.

FUTURE DEVELOPMENT OPTION REMAINS ON THE TABLE

According to publicly available project documentation, the Saraji East Mining Lease Project has been designed as a major underground metallurgical coal operation adjacent to existing BMA mining infrastructure.

The project could potentially:

  • produce between 8 and 11 million tonnes of metallurgical coal annually

  • operate for more than 20 years

  • support significant construction activity

  • create long-term operational employment

  • contribute to Queensland export revenues

Official project information:

  • Saraji East Mining Lease Project Environmental Impact Statement

  • Queensland Government Project Assessment Documentation

The project remains one of the largest undeveloped metallurgical coal opportunities currently under consideration within the Bowen Basin.

ROYALTY DEBATE CONTINUES TO INFLUENCE INVESTMENT DECISIONS

While BMA continues maintaining the project pipeline, the company has repeatedly highlighted concerns regarding Queensland’s coal royalty framework.

The royalty structure, introduced in 2022, increased royalty rates during periods of elevated coal prices and has become a key topic of discussion across the resources sector.

Industry groups have argued that higher royalty costs may impact Queensland’s competitiveness when compared with other mining jurisdictions globally.

Recent industry discussions have focused on:

  • investment competitiveness

  • project economics

  • operating costs

  • future capital allocation

  • long-term resource sector growth

Mining companies across Queensland continue assessing future investment opportunities against market conditions and regulatory settings.

WHY INDUSTRY IS WATCHING CLOSELY

Unlike routine production updates, Saraji East represents a potential future project capable of generating work across a broad range of industries throughout Central Queensland.

If developed, the project could create opportunities for:

Many businesses throughout Mackay, Moranbah, Dysart and surrounding communities view large-scale mining developments as important drivers of future contract opportunities and regional economic activity.

Large-scale coal mining infrastructure in the Bowen Basin representing the proposed Saraji East Project near Dysart.

BOWEN BASIN PROJECT PIPELINE REMAINS UNDER THE SPOTLIGHT

The Saraji East project comes as the Bowen Basin continues experiencing significant attention from resource companies, government agencies and industry stakeholders assessing future growth opportunities.

Projects linked to:

  • metallurgical coal

  • critical minerals

  • energy infrastructure

  • industrial development

  • export supply chains

continue shaping discussions around workforce demand, investment confidence and long-term regional growth.

Industry representatives have repeatedly highlighted the importance of maintaining a competitive investment environment to support future project development throughout Queensland’s resource regions.

WHAT HAPPENS NEXT?

At this stage, the Saraji East Project remains an active future development opportunity rather than a committed construction project.

Future progress is expected to depend on:

  • metallurgical coal market conditions

  • global steel demand

  • project economics

  • investment priorities

  • regulatory settings

  • Queensland royalty policy

For Bowen Basin businesses, the project remains one of the region’s most closely watched long-term mining opportunities, with future investment decisions likely to be monitored closely across the industry.

Sources

Saraji East Project investment decision pending at a Bowen Basin coal mine in Central Queensland.

Project Snapshot

Project

Saraji East Mining Lease Project

Operator

BHP Mitsubishi Alliance (BMA)

Location

Near Dysart, Bowen Basin, Queensland

Sector

Metallurgical Coal

Status

Future Development Option

Key Focus

Future metallurgical coal production and export supply

Opportunities for Industry

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