'Had enough': calls for end to coal royalties debate

A community is reeling after its long running mine was mothballed with claims it has been caught in the crossfire of a state's coal royalties debate.

A mayor has called on the Queensland government to sort out the royalties issue, saying her region has "had enough" after being hit hard by a mining giant's announcement.

BHP Mitsubishi Alliance will axe 750 jobs across the state and place a Bowen Basin mine into care and maintenance from November.

The alliance took aim at Queensland's coal royalty scheme after confirming the job cuts and its decision to mothball the Saraji South project located in Isaac Regional Council.

It sparked calls from mining lobby groups for reforms but Queensland's Liberal National government refused to make any changes to the state's progressive royalty regime introduced by the previous Labor regime.

Saraji South is among the alliance's five steel-making coal mines in central Queensland and one of the longest running, with operations starting in 1974.

The alliance's decision to mothball it is set to impact the Isaac region, prompting a passionate plea from its mayor.

"When it comes to the royalties debate, we need the companies and government to get in a room and sort this out," Kelly Vea Vea said.

"Right now, we have industry firing shots across the bow, government with their hands over their ears and communities caught in the crossfire."

Ms Vea Vea extended an open invitation for the state government's Resources Cabinet Committee to visit her region and meet with industry and community to "see first hand what is at stake".

"The mining industry and our communities are intrinsically linked. What happens to one has a ripple effect on the other," she said.

"It's time to take this conversation out of the high rises ... and bring it to the coal face - our region has had enough.

"We need industry and government to get in the same room and find common ground."

The alliance said the layoffs and Saraj South decision were necessary due to "unsustainable" royalties and market conditions, claiming the state coal industry was approaching a "crisis point".

The former Labor government introduced the tiered system in 2022, delivering lucrative royalties from mining companies and taking more when coal prices are high.

About 72 coal production jobs are set to be affected by the Saraji South announcement with 750 predominantly corporate and support roles to be cut across the alliance's Queensland business, the Mining and Energy Union said.

Queensland Opposition leader Steven Miles called on the state government to do "whatever they can" to either support the alliance to keep the jobs or to help axed workers find other roles.

Also under review is the BHP FutureFit Academy in north Queensland for workers joining the industry which has about 100 trainees.

Premier David Crisafulli said it was a "really difficult time for workers", claiming the previous government had set up the mining taxes without consultation.

"Our government is working to restore confidence in our resources industry - the days of the government at war with the industry are over," he told parliament on Wednesday.