Posted on 20 Nov 2024
Many low-cost competitors are ‘better placed’ than Australia in mining for metals needed for the energy transition, warns BHP’s Australia president Geraldine Slattery.
In a speech to the QUT Business Leaders Forum in Brisbane on Monday, Slattery said the world is shifting to resources and metals needed for decarbonisation, such as copper, nickel, lithium, rare earth metals, and lower carbon steel.
“In this shifting world, there are many competitors aggressive in their pursuit of market share and the technology that unlocks a lower cost of supply,” she highlights. “Often better placed than Australia.”
“The shift in the nickel market tells this story best in the recent past,” the executive continues.
The Australian mining giant in July said it would suspend its Western Australia Nickel operations until February 2027 amid an oversupply in the global nickel market – a decision Slattery calls “difficult but necessary.” An increase in the supply of low-cost nickel from Indonesia and a drop in EV demand has seen nickel prices plummet in the past year, Kallanish understands.
In addition, the growing global challenges further stress the need for Australia to ensure long-term competitiveness.
“The world has become less integrated,” the president highlights. “We are retreating from a world of trade and globalisation – the trends that have shaped business for nearly four decades. Everywhere we see the rise of insularity. National champions. Tariffs and trade barriers. War and geopolitical tensions on three continents.”
While competition grows, inflation, labour shortages, economic uncertainty, and regulatory barriers are also causing “headwinds” in every industry, Slattery says, adding: “In this more tumultuous, competitive environment, Australia sits at a crossroads.”
Amid these challenges, the BHP boss has called for collective intervention and leadership action, advocating for leaders to “challenge the status quo.” Navigating the “complex challenge,” she adds, would require “stable and globally competitive” policy settings.
Source:Kallanish
