The dispute between Queensland Treasurer Cameron Dick and diversified major BHP has escalated, with Dick warning that BHP's existing leases at its Queensland mines could potentially be cancelled if they were found to be "misused." BHP had recently announced that due to the Queensland government's decision to increase coal royalty rates and the resulting increase in sovereign risk, the company would not invest further in growth in Queensland. However, BHP emphasized its commitment to sustaining and optimizing its current operations.

According to Queensland legislation, the Resources Minister has the authority to cancel a mining lease or impose penalties if lease holders are not using the lease for its intended purpose, fail to pay royalties or other required payments, or do not comply with the lease's conditions.

A spokesperson for the Treasurer stated that any decision made by the Resources Minister would adhere to the provisions of the legislation.

In the 2023 financial year, BHP's BMA operations in Queensland produced 29 million tonnes of coal, comparable to the previous year. However, the company's underlying earnings before interest, tax, depreciation, and amortization (EBITDA) decreased by 50% to $3.2 billion due to lower commodity prices and higher royalties. The new royalty regime resulted in BHP paying an additional $0.7 billion in royalties to the Queensland government for the 2023 fiscal year, contributing to an adjusted effective tax rate of 55%, including royalties and income taxes.

In the coming financial year, BHP plans to rebuild inventories at its BMA mines, which were reduced over the past three years to manage supply chain disruptions caused by adverse weather conditions. The company also confirmed its intention to proceed with the divestment of the Blackwater and Daunia mines to maximize value.