Geraldine Slattery: Australia must lift productivity to stay globally competitive

One hundred and forty years ago, the Broken Hill Proprietary Company, which had begun mining a small deposit of silver in the outback of NSW, was officially incorporated. That moment marked the beginning of a business that would go on to become the world’s largest mining company: BHP.

From that day forward, our story has always been deeply intertwined with Australia’s, and while we are today a truly global company, we have called Melbourne home since the very beginning in 1885, and more than 60 per cent of our shareholders are Australian.

As industries evolved, technologies advanced and global markets shifted, BHP and the resources sector have set the stage for the future, anticipating what Australia — and the world — needs.

Resources has always delivered for Australia, providing the jobs, investment, exports and productivity gains that have helped underwrite the nation’s prosperity and the essential services upon which every Australian depends.

Put simply: when the resources sector does well, so too does Australia.

The world and BHP have changed a great deal since 1885, and there is no doubt that the coming 140 years will bring the same transformational change as populations and economies grow and the world electrifies.

This presents both opportunity and threat for Australia. As is now well recognised, we face low productivity growth, rising competition for global capital and disproportionately high costs of doing business.

In this context, the Australian Government’s focus on lifting productivity is welcome and necessary to reset our attractiveness as an investment destination.

With the right policies in place, Australia has an outsized opportunity to make the most of our natural advantages and significant deposits of the commodities the world is hungry for, particularly iron ore and copper.

The Pilbara region of WA is one of the largest and most productive mining regions in the world, supplying global markets and supporting hundreds of thousands of direct and indirect jobs. Workers directly employed in the Pilbara’s resources sector are, on average, Australia’s highest rewarded workforce.

The region has helped underpin living standards at home and economic development abroad, and it will remain a vital source of strength and opportunity if properly supported. This is the prize we must protect as demand for iron ore moderates, and also what we must replicate in new basins.

The Copper South Australia province is uniquely positioned to capture a generational opportunity, aiming to grow copper cathode production towards 500,000 tonnes per annum as global demand for copper is predicted to increase 70 per cent by 2050.

This ambitious goal is one worth competing for. A world scale mines-to-metal copper producer once again puts Australia at the forefront of providing the commodities the world needs.

Being a globally competitive investment destination is not just about growth today; it’s about creating the conditions that catalyse technological progress, high paying jobs and career opportunities, and shared benefit for all.

With smelting at the heart of its operations, investment is crucial for boosting productivity and ensuring that the province remains a globally significant player in a future fuelled by megatrends driving copper: traditional demand, the energy transition, and data centre growth.

Strategic investment today will translate into productivity tomorrow, positioning Copper South Australia as a high-performing resilient hub in the global copper supply chain.

Australia has achieved a great deal, but the conditions that delivered past success will not guarantee future growth and national prosperity. We should be optimistic, but not complacent, because, again, there is a huge prize to play for and win.

I see five important actions that Australia can and should take to liberate the innovative and competitive potential that has underpinned Australia’s success thus far: speeding up environmental approvals, ensuring Australia benefits from abundant, affordable and reliable energy, making the right reforms to get to the front of the pack on AI and other emerging technologies, deliver world leading skills and training to unlock a globally competitive workforce, and putting in place fiscal settings that reward and encourage major investments being made here in Australia.

Working together on a shared national goal of improving Australia’s competitiveness, we can build an economy that continues to deliver growth, opportunity and resilience.

As we celebrate BHP’s 140-year contribution to Australia today, tomorrow’s long-term success depends on the ability to continue to lead and adapt for the next century and beyond.

Australia has the resources, the expertise and the global reputation. What we need is the courage and vision of those that came before us, to lead us forward.

Geraldine Slattery is BHP’s Australian president