BRISBANE (Reuters) – Australia’s critical minerals strategy does not need the sugar hit of more subsidies as good projects will find investment, but the country needs to hasten mine development timeframes and rework new workplace legislation, BHP’s CEO said on Tuesday.
BHP CEO Mike Henry’s comments came a week after Australia, one of the world’s biggest suppliers of raw minerals, outlined a strategy on how it will work with investors and international partners to build a critical minerals processing industry.
The strategy, which aims to see Australia as a significant producer by 2030 of critical minerals that are key to the global energy transition, drew criticism from some who were hoping for larger subsidies, shorter regulatory approval timeframes and additions to its list of critical minerals.
Henry said the national and state governments instead needed to focus on making their jurisdictions more attractive for investment.
“There is enough investment appetite for good projects under the right conditions,” Henry told a mining conference in Brisbane.
“What the Australian resources industry needs is better productivity and fiscal settings,” he said.
That includes faster permitting, a productive and flexible workforce, and consultation over proposed regulation, such as changes to royalty regimes.
“Under those conditions, the capital will flow.”
As an example of where capital will not flow, Henry said BHP would not invest further in Queensland, where the state government held no consultation before hiking coal royalties last year to the highest of any jurisdiction in the world.
Queensland on Tuesday announced a new critical minerals development strategy to attract investment to the state.
BHP estimates the world will need an additional $100 billion per year in capital investment in the resources sector to get on track to meet the Paris aligned 1.5C scenario, he said.
Translated into metals demand, Henry said that means two times as much copper, four times as much nickel, twice as much steel and twice as much potash, BHP’s major products.
(Reporting by Melanie Burton; Editing by Sonali Paul)
