Workers have started strike action at mines in Bowen Basin, Queensland owned by BHP Mitsubishi Alliance (BMA), a joint venture of Australian miner BHP Billition and Japan's Mitsubishi, due to the break down of negotiations on better pay and working conditions. This is the first time in 10 years BHP Billiton workers have gone on strike.
The three rolling six-hour stoppages on June 14, 15 and 18 will involve about 3,500 employees in total at BMA's operations in the Bowen Basin
It is thought that the strike may have an impact on coal prices. Due to various factors, coal prices in China have risen by RMB 90/mt ($14/mt) in the current year, and one industry insider has expressed the view that the strike by BMA workers may influence coal prices for China. In addition, with domestic steel market demand expected to be soft in June and July, steel enterprises in China may face higher costs and reduced demand, which is bad news for their profit margins.