For every cause, there will always be a corresponding, resulting effect.
With prices of commodity on the downhill, coupled with growing operating costs, Queensland miners may be forced to slash jobs if only to be able to comply to a proposal to increase mining royalties in the Australian state.
A truck loads piles of coal at a coal mining site in Berau, Indonesia's East Kalimantan province
"For a mining company that is already in a loss making situation with additional costs, they will seek out ways of off-setting those costs," Michael Roche Queensland Resources Council (QRC) chief executive, told reporters.
"That could be through cutting jobs in certain areas."
Queensland Treasurer Tim Nicholls wants to raise mining royalties in next month's budget in a move to generate $4 billion in savings over the next three years.
Already, Australia has been swamped with lots of job cut announcements in the past couple of weeks, from Rio Tinto, BMA (the BHP Billiton Mitsubishi Alliance), Xstrata and even Ford Australia.
But Mr Nicholls argued he only has limited options to increase revenue from taxes and charges.
But "for some mines I fear it may be the tipping point for them," Mr Roche said, noting a senior executive from an unidentified coal mining firm disclosed to him on plans of cutting additional 200 jobs from his company.
"And that's before any royalties consideration," Mr Roche said.
"Coal prices have plummeted. Let's hope they recover over the coming months."
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