The contractor operating one of Queensland’s newest coal mines has warned employees of potential job losses and restructuring, in a letter sent ahead of the Easter long weekend.
EPSA, a Spanish-based mining conglomerate, operates the Isaac Downs mine on behalf of Stanmore — an extension to the Isaac Plains complex bought by Stanmore for $1 in 2015.
This masthead has seen a letter sent by EPSA to employees foreshadowing a “review and potential reduction in the number of personnel” and a “review and potential restructuring of operational departments”.
“EPSA has developed the 2026 Mine Plan for the Isaac Downs Complex, which will change operational requirements on site,” it reads.
“EPSA is reviewing its operating model to ensure it remains aligned with production requirements and business needs.
“The 2026 Mine Plan involves changes to the current mining methodology and equipment requirements, which may impact the structure and resourcing of some work areas.”
The letter notes any confirmed changes will be communicated in writing prior to April 27.
A Mining and Energy Union Queensland spokeswoman said the union was aware and supporting its members while seeking further information.
Mine owner Stanmore said production at Isaac Downs is expected to scale down as the operation approaches the end of its current mine life.
“This is consistent with our mine planning and broader portfolio strategy, including progression of future development opportunities such as the Isaac Plains Extension project,” the company said.
“Isaac Downs remains an important asset within Stanmore’s portfolio, and operations continue safely and in line with plan. Stanmore regularly reviews mine plans and contractor performance to ensure alignment with operational requirements, safety standards and market conditions.
“These reviews are part of normal business practice, and any adjustments are managed to support safe and reliable operations.”
A swath of Queensland coal mines were mothballed or placed into care and maintenance over the past 12 months, as the industry wrestled with lower prices, and high costs eating into profits.
Coal prices have since rebounded and are expected to rise throughout the year, as a result of the Iran war, but will need a steady supply of diesel to keep operating.
Queensland Resources Council chief executive Janette Hewson said the industry was carefully monitoring diesel supply and cost risks as it is a “significant” cost for all operations.
“QRC is meeting regularly with Government and industry bodies to ensure the mining sector can continue to access diesel in the short-term and also secure long-term domestic supplies,” she said.
“All Queensland coal producers have been under sustained pressure since 2022 when the state introduced the world’s highest coal royalty rates.
“Since then, average production cost has increased by 29 per cent and there has been a 24 per cent year-on-year decline in coal jobs to May 2025 with another 1000 job losses since July 2025.
“Rising business costs including diesel supply and price increases are adding further pressure to margins.
“We can expect coal companies to be forced to make tough decisions about their business and workforce.”
Stanmore and EPSA were contacted for comment.