“I’m worried. Thermal prices are pretty low and coking prices are getting a bit tight,” Ferguson said yesterday.

“I think from my feedback – talking to a whole variety of companies – coal producers at the moment are not making much at all. We’ve seen some very high-cost mines mothballed.”

His comments followed Rio Tinto Australia managing director David Peever’s remarks earlier in the day about the lack of profitability in the coal industry.

“Some states have increased royalties with commodity prices diving – that is not smart,” Ferguson said.

“Our job at the moment is to work out how we keep those mines operating.

“I am worried more about the east coast than I am about the west coast.”

Ferguson said it was important for mines to stay afloat, no matter which company operated them.

“It’s a question of the market – it doesn’t matter whether you’re an Australian or an overseas investor, you’ve got to turn a quid,” he said.

“You’ve got high costs, low prices, increases in royalties and then you’ve got everything coming against you.”

He acknowledged the fact that in a time of high prices, projects were not properly managed.

“I met with the Minerals Council about a month ago and had a very frank discussion about where we’re up to across a range of commodities, and they accept they’re partially to blame,” Ferguson said.

“We as a government, with state governments, have to streamline approvals, reduce timelines, reduce cost delays and the unions have to have a regard for capacity to pay – the world is changing.

“No one owes us a living and I think that’s the message you’ve got from a lot of people from a range of political persuasions and business people.”