"The near tripling of top end royalties by the Queensland government remains a serious concern and threat to investment and jobs in that state," BHP said in a market update on Wednesday.
BHP sees strong long-term demand from global steelmakers for Queensland's high-quality metallurgical coal.
But BHP reiterated it was unable to make significant new investments in Queensland "in the absence of fiscal terms that are both competitive and predictable".
BHP CEO Mike Henry also warned of global uncertainty in the short term.
He said it would continue to affect supply chains, energy costs, labour markets and equipment and materials availability.
BHP "remains well-positioned" and is positioned to benefit from the global mega-trends of decarbonisation and electrification, Mr Henry said in an operational update for the three months to September 30.
All production and unit cost guidance remains unchanged for the 2023 financial year.
But NSW Energy Coal (NSWEC) production decreased by 38 per cent to three million tonnes amid more than three times the usual amount of rainfall.
Copper production was up nine per cent on the same quarter last year, with strong concentrator throughput at Escondida in Chile and record quarterly anode production at South Australia's Olympic Dam.
Western Australian Iron Ore (WAIO) continued to perform strongly, with production up by three per cent on the same period last year.
"The South Flank iron ore ramp-up and the Jansen potash project are tracking well, with work ongoing to bring forward first production from Jansen Stage 1 and accelerate Jansen Stage 2," Mr Henry said.
South Flank in the Pilbara is Australia's largest new iron ore mine in more than 50 years.
BHP said the signing last month of a power deal with Alinta Energy is expected to halve greenhouse gas emissions from the electricity used in its WAIO port facilities by the end of the 2024 calendar year.
The miner is the foundation customer of Alinta's solar battery project in Western Australia, which is expected to be the first large scale renewable facility at Port Hedland with construction expected to begin in December.
During the September quarter, BHP also signed an agreement with India's Tata Steel to collaborate on lower emission steelmaking and announced a partnership with Pan Pacific Copper to reduce emissions from shipping.
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