Mining Journal > Exploration & Development > Workers begin strike at BHPB-Mitsubishi Alliance coal operations

Approximately 3,500 employees at seven coking-coal mines in Queensland, operated by the BHP Billiton-Mitsubishi Corp alliance, have begun a week-long strike in protest against working conditions.

The strike affects the Blackwater, Broadmeadow, Gregory Crinum, Goonyella Riverside, Norwich Park, Peak Downs and Saraji mines, all 50/50 owned by BHPB and Mitsubishi. The seven mines form the bulk of BHPB’s Bowen Basin assets, alongside two mines co-owned with Mitsui & Co.

Results published in January show that BHPB produced approximately 17.8Mt of coal from its Queensland operations over the second half of 2011, a 2% reduction compared with the same period in 2010. The company attributed the decrease to poor weather and ongoing labour disputes, saying “The extent to which industrial action will continue to impact production, sales and unit costs is difficult to predict.”

The striking workers are represented by the Construction, Forestry, Mining and Energy Union (CFMEU). Tony Maher, the union’s president, said “BHP is playing hardball in workplace negotiations because it wants lower standards across the industry. This one-off boom is delivering record profits to companies like BHP. It should also be delivering better jobs for Australians.”

The union said the affected mines were capable of producing 1Mt/wk under normal conditions. In comments to Bloomberg, BHPB spokeswoman Fiona Martin said the company was disappointed by the decision, but hoped to resume talks with a view to settling the dispute.

The strike is due to end on February 22.