BHP Group (ASX:BHP) is set to cut 750 jobs in its coal mining operations in Queensland, citing "unsustainable impact of the Queensland Government's coal royalties," according to media reports on Wednesday.

The miner will put the Saraji South operations into care and maintenance from November, and it will conduct a strategic review of the FutureFit Academy in Mackay.

The BHP Mitsubishi Alliance (BMA) operations in Queensland produced 1% underlying return on the capital employed, compared to 43% for the Western Australia iron ore business and 6% for the copper business in South Australia, The Australian noted.

While medium-term demand for BMA's premium hard coking coal is strong, maintaining operations in lower margin areas of the mine network was "not sustainable under current conditions," BHP said.