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AAP

Laine Clark

Coal 'crisis': hundreds of jobs cut, mine mothballed

Coal Mining Queensland BHP Dan Peled

A coal royalties scheme and market conditions are being blamed for a mining giant's cuts. (Dave Hunt/AAP PHOTOS)

A coal industry "crisis" has led to hundreds of job cuts and a long-running mine to be mothballed, sparking criticism of a controversial royalty scheme.

BHP Mitsubishi Alliance has been branded "un-Australian" by the Queensland government after announcing the layoffs, with a union accusing the mining giant of spreading fear.

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