BHP noted that competing with attractive U.S. incentives, designed to secure supply chains and reduce dependence on China, is becoming increasingly difficult. The company is even considering reopening former mines in Arizona to benefit from U.S. policies.
In response, Australia has accelerated preparations to update environmental regulations, with new rules expected to take effect by the end of the year. However, BHP emphasized that labor productivity has dropped to its lowest level in 60 years, posing risks for future investments and economic growth.
On the positive side, BHP announced an AUD 840 million investment for the Olympic Dam copper project, aiming to double production by 2027. The company argued that tax relief, strengthened workforce training, and rapid adoption of automation and AI are essential for Australia to maintain its global mining competitiveness.
Experts suggest that simplifying bureaucratic processes and reducing costs is critical for Australia to attract billions in new resource investments. Otherwise, once-in-a-generation large mining projects could move abroad, risking Australia missing out on the global resource surge.
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