BHP chief labels state's royalty regime unsustainable

BHP dislikes Queensland's royalties regime but has no plans to sell its coal operation in the state. (Dan Peled/AAP PHOTOS)

Queensland's royalty regime has made new investments in the state unfeasible, the boss of the world's biggest mining company says.

BHP on Tuesday disclosed it had paid $1.8 billion in state royalties on its five coking coalmines in central Queensland, a joint venture with Japan's Mitsubishi Corp.