November 29, 2025 - International interests have bought Queensland miner Fitzroy Australia Resources in a deal seen as a vote of confidence for the state's languishing coal industry.

Argo Holdings Queensland, which is "backed by a global commodity trader and local investors," acquired 70% of metallurgical coal producer Fitzroy for an undisclosed sum, according to a Nov. 26 release from the company.

A Queensland government source confirmed to Platts, part of S&P Global Energy, that Argo is a new entity, while an unnamed Japanese entity also purchased the other 30% of Fitzroy.

"Fitzroy is a business we know well, with familiar people, and assets that we believe hold significant strategic and operational value," Argo director Richard Livingstone-Blevins said in the statement.

"On our journey to build a globally relevant coal mining business, we see Queensland's world-class Bowen Basin as a natural jurisdiction from which to grow. With numerous development projects and key infrastructure, Fitzroy provides a foundational platform, strategically located in the Moranbah region."

Fitzroy operates the Ironbark No.1, Carborough Downs and Broadlea mines in Queensland's prolific Bowen Basin, and the deal will secure the future of over 1,000 employees, contractors and suppliers at the three sites, according to a statement from Queensland Premier David Crisafulli.

The "landmark deal between European and Japanese investors was struck following negotiations" led by Crisafulli during a recent trade mission to India and Japan, according to the premier's statement.

"The deal is a major vote of confidence in Queensland's coal industry," Crisafulli's statement said.

The announcement came the same day as an Economic Contribution Report from the Queensland Resources Council showed that coal contributed A$76 billion (about $50 billion) to the state's economy in fiscal 2024-25, or about 15% of the gross state product. That was down from A$85.3 billion in fiscal 2023-24 and A$83.7 billion in fiscal 2022-23.

Poor outlook for miners

Miners in Queensland, the state leading Australia's standing as the world's largest exporter of metallurgical coal, have been under pressure from low prices and high royalty rates imposed in 2022.

Platts assessed the Premium Hard Coking Coal Australia Export FOB East Coast Port price at US$199/metric ton on Nov. 25, down from US$203.50/mt a year prior.

QRC CEO Janette Hewson told the group's annual lunch in Brisbane on Nov. 26 that pressures on the state's coal miners are not expected to ease anytime soon.

"We know the headwinds are strong for some parts of our sector, particularly coal producers -- and many in this room are feeling them keenly this year: rising costs, challenging royalty regimes despite lower prices, complex approvals, policy instability, regulatory overlap, increased red tape and global uncertainty," Hewson said.

"We're also seeing signals that the harder times will continue," Hewson added.

These signs include "slight decreases in total direct and indirect workforce, and in some regions far lower spend in what looks like a pause as we shelter from the headwinds," she said.

Yet Hewson said Queensland's resources sector remains "resilient but constrained, optimistic yet cautious. The fundamentals of our sector remain strong and with some change, we can keep Queensland competitive."

Industry needs "timely approvals, consistent policy, clear pathways to market and enabling infrastructure," along with "clear, stable and consistent policy settings," Hewson said.

Dean Kirkwood, general manager at member association Resource Industry Network, noted at the luncheon that Queensland has already seen job losses announced since the end of fiscal 2024-25, "and the next 12 months will be critical in understanding the full impact on local businesses and families."