“Potential to Go Backwards”
BHP’s chief development officer, Johan van Jaarsveld, voiced concerns over Australia’s current investment environment, cautioning that without policy improvements, the nation might regress. BHP, despite its commitment to continuing its investments in Australia, is now reevaluating the associated risks and rewards, especially in light of recent government actions.
The mining titan has been particularly critical of the Albanese Government’s “same job, same pay” proposals, predicting a substantial $1.3 billion hit to its revenue, affecting its dividend pool. Furthermore, following Queensland’s contentious coal royalty program, BHP has signalled its intentions to avoid new investments in the region.
Addressing the Melbourne Mining Club, Mr. van Jaarsveld remarked on the sudden introduction of royalties and the noticeable lack of government dialogue. He emphasized the necessity for Australia to maintain its fiscal stability, alongside balanced labor policies to ensure its attractiveness as an investment destination.
He further highlighted the global investment landscape, saying, “Where you have lots of opportunities to invest across many countries, it becomes crucial that Australia remains stable and competitive.”
On another note, Mr. van Jaarsveld pointed out that the nickel market isn’t ready to pay a premium for environmentally-friendly products, like those offered by its Nickel West business, as manufacturers continue to source from Indonesia.