Bowen Coking Coal has entered voluntary administration, placing the future of the Burton Mine and approximately 500 jobs in Queensland’s Bowen Basin at significant risk.
The company appointed Mark Holland and Shaun Fraser of McGrathNicol Restructuring as voluntary administrators on July 29, 2025, following unsuccessful attempts to secure fresh capital and a short-term royalty deferral from the Queensland Revenue Office, which was rejected on July 29, 2025.
The administration comes amid a highly challenging environment for Queensland’s coal industry, with rising energy and production costs, low global coal prices, and the burden of some of the world’s highest coal royalty tax rates imposed by the Queensland government in 2022.
Bowen Coking Coal’s board cited these pressures as key factors prompting the decision to appoint administrators, reflecting the broader struggles faced by coal producers in the state.
QRC Chief Executive Officer Janette Hewson expressed deep concern about the impact on workers and the local community, stating: “The announcement will cause deep uncertainty for hundreds of Queensland workers and their families who face the prospect of losing their jobs if the Burton Mine closes permanently.”
She further described the situation as “a sad day for Bowen Coking Coal, a Queensland mining company, at a time when operating conditions in the coal industry have become extremely challenging”.
Hewson added: “Energy and production costs have risen significantly for coal producers while coal prices are stubbornly low and Queensland producers are paying the world’s highest coal royalty tax rates.”
Hewson warned that the challenges faced by Bowen Coking Coal are not isolated, noting: “QRC is aware of other mining companies operating in Queensland experiencing difficulties attributable to the same factors.”
She emphasised the resource sector’s importance to Queensland’s economy and stressed ongoing efforts to work with the government for policies that enhance competitiveness and investment retention.
“We need a fair and balanced coal royalty regime that delivers for both Queensland and coal producers,” Hewson said.
While the administrators have assured that the Burton Mine’s operations will continue on a business-as-usual basis during the administration process, the outcome remains uncertain.
The administration aims to create a window for potential sale or recapitalisation of Bowen Coking Coal and its assets, but a creditors’ meeting scheduled by August 8, 2025, will provide more clarity on the mine’s future.
The development highlights the fragile state of Queensland’s coal industry, with elevated operating costs and government royalty policies contributing to financial difficulties for multiple mines, raising concerns about the stability of mining employment and regional economies dependent on resource extraction.
