BHP urges reform to keep Australia in minerals race

Seizing an outsized share of critical mineral investment flows will be crucial to Australia’s future economic prosperity, according to BHP. But the company argues in a new report that the competitiveness of Australia’s mining sector is under threat. Policy stability and consistency across governments are paramount to attracting the potentially multi-billion-dollar investments in mining and downstream processing projects the world is looking to deploy, the company states. BHP points the finger at 'recent examples of sudden and unilateral changes in tax and royalty regimes' for putting such investment at risk. Related: QRC cracks on with coal royalty crusade The increasing complexity of regulation at state and Federal level was also leading to project delays, while industrial relations changes risked creating additional cost pressures and restricting the ability of industry to improve productivity, the company warned. It says its Recapturing Australia’s Competitiveness report aims to create a national conversation on competitiveness to support Australia’s future prosperity. “Australia has a huge opportunity to capitalise on major change in the world economy driven by the megatrends of decarbonisation, electrification and population growth – but we must be ready and able to compete in the global arena,” BHP president Australia Geraldine Slattery said. “Many countries are endowed with vast quantities of minerals essential to decarbonisation, and Australia’s global competitors are implementing ambitious policies and investing in technology and skills to capture their share of new capital investment, talent and supply chains. BHP president Australia Geraldine Slattery. “Australia needs to encourage major investment in the people, technology and skills required to create a diverse modern economy. "More efficient assessment and permitting for major projects, strategic infrastructure and a stable policy environment will encourage global capital to flow to Australia’s shores. “Recapturing Australia’s Competitiveness is a proposal for government and industry to work together on a policy agenda that is positive, productive, ambitious, and actionable. "It is about acknowledging the reality of our present situation, recognising the urgency of the task, and determining a plan for action. We hope this is the beginning of a conversation about how Australia can get ahead and stay ahead.” Related: Right choices needed to stay in competition – BHP boss If Australia were to increase its production of the commodities central to the energy transition (critical minerals plus copper and nickel), this could bring up to $20 billion in annual investment for years to come, according to BHP. It highlights four key pillars required to deliver on this opportunity: Stable and globally competitive fiscal settings Robust, transparent and streamlined permitting Best-in-class enabling infrastructure A world-class METS sector and workforce of the future

BHP urges reform to keep Australia in minerals race

Industry Queensland

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