PERTH (miningweekly.com) – Mining major BHP has called for a cohesive response from the resources industry, government and interest groups to capitalise on Australia’s growth opportunities.

BHP’s president for its minerals Australia division, Edgar Basto, told the Australian Strategic Business Forum that Australia is well positioned, having navigated the challenges of the Covid-19 pandemic better than most countries, to achieve long-term growth in the national economy.

“On the whole, Australia has remained relatively stable and supportive of business activity and investment. That provides a foundation to refresh and to recharge, as long as we can diversify and modernise our economy, to create greater resilience and new opportunities.

Of course, we still have plenty of work to do,” Basto said.

“We risk holding ourselves back if we do not address a number of pressing issues, including rising inflation and skills shortages, uncompetitive fiscal settings, and falling productivity and education levels.

“We can overcome these challenges, but only by working together in the spirit of shared interests.

“The federal government has talked positively about key areas of Australia’s economy coming together, to find solutions to boost productivity, and drive growth, for all Australians. We fully support that approach,” he added.

However, Basto said that there have been recent examples when this was not the case, pointing to the Queensland government’s decision to increase coal royalties from June 1.

“Queensland now has the highest coal royalty rate in the world, in a state where the cost of doing business is already high. But what is perhaps most disappointing is that the decision was made without any consultation.

“We have been part of Queensland for many decades, employing hundreds of thousands of people, investing billions of dollars, and contributing to regional communities,” Basto said.

He added that with the introduction of the new coal royalties, the resources sector, and several businesses that work with the industry, would now "think twice" about investing in Queensland.

“The impact won’t be seen immediately, but over time it will affect investment, jobs and business opportunities, especially in Central Queensland.”

Meanwhile, Basto pointed out the necessity for Australia to diversify its resource offerings in order to stay relevant to the global market.

“About a quarter of Australia’s gross domestic product comes from exports, and nearly two-thirds of that comes from the resources sector. This needs to change.

“We need to diversify Australia’s economic base, particularly when you consider that global demand for resources will change in the decades to come. Demand will significantly increase for commodities like copper, for renewable electricity infrastructure, and nickel, for electric car batteries, and will remain strong for iron-ore and metallurgical coal for steelmaking.

“Australia has some of the world’s best natural resources, but we face competition from other regions, and the impact of inflation. The sector faces the peak, and the erosion, of demand from China as its economy matures and decarbonisation will impact demand for traditional energy commodities from Australia.

“All economies change over time. The challenge we all face is that we are not seeing new industries emerge to diversify and strengthen the national economy to the extent or at the pace required,” Basto said.