BHP Billiton CEO, Andrew Mackenzie, defended the company’s high production levels saying that Australia will only harm itself if it cuts commodity production.
Mr Mackenzie gave a speech at Minerals Week in Canberra yesterday, reaffirming the significant contribution the resources industry makes to Australia.
“The Australian resources industry has many competitive advantages including our superior resource endowment, geographic location close to our key customers, infrastructure linking these resources to markets, a skilled workforce and a stable political environment,” he said.
“Our nation’s prosperity has been built on an abundance of natural resources and the last ten years has provided ample proof of that. The economic benefits from mining increased our standard of living and saw Australia emerge as one of the world’s strongest economies and wealthiest nations.”
The boss of the world’s biggest miner also highlighted the significant contribution mining companies have made to their host communities and governments, through the taxes and royalties paid at both State and both State and Federal level, as well as the importance of competitiveness and innovation.
“Last year alone, BHP Billiton paid nearly nine billion dollars in taxes and royalties in Australia – an effective tax rate of more than 45 per cent and as a sector we contributed taxes and royalties to Australia of close to 23 billion dollars,” he said.
“The mining sector must lead the way with innovation and sustainability to maximise the economic and social benefits of our operations and minimise our environmental footprint. To become an exporter of new ideas Australia must become a leader in education and develop a pipeline of talent, knowledge and skills, especially in the STEM subjects. The resources industry needs to work more closely with leading universities and other research organisations such as CSIRO,” said Mr Mackenzie.
According to him, it’s more important for the industry to get involved in public policy debates, drive innovation and beat the competition so the economy can benefit, rather than to reduce activity.
