No need for multi-party bargaining for high-paid miners, says BHP boss

“As to whether multi-employee employer bargaining is needed for that or not I think is highly debateable, in our view it’s probably not.”

BHP chair Ken MacKenzie opened BHP’s first AGM since the ASX-listed entity incorporated what was a separately traded UK company earlier this year.

MacKenzie apologised to employees who had experienced sexual harassment, racism or bullying. For the past two years numerous cases of such behaviour, current and historical, have rocked the entire WA mining sector.

“Although we are making progress in these areas, we know we have a lot more to do,” he said.

The meeting of shareholders was the first since BHP offloaded its petroleum division to Woodside in return for scrip in the enlarged gas giant for its shareholders.

MacKenzie pitched that BHP’s reduced portfolio of commodities would do well as the world responded to climate change.

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“According to our modelling, to deliver our Paris-aligned 1.5-degree scenario, the demand for copper, nickel and steel will grow to enable the infrastructure and products required for the energy transition,” he said.

While Thursday’s meeting was calmer than Woodside’s tempestuous climate-focused AGM in May, BHP did not escape questioning from shareholders with environmental concerns due to its plans for long-term production of metallurgical coal.

MacKenzie supported continued mining as there was no other way to make the steel required to move to renewable energy. He said steelmaking without coal was probably decades away and in the meantime BHP’s higher quality product allowed steel to be produced with less emissions than if other coal was used.

“There is no known pathway at this point in time to reduce steel emissions to zero,” he said.

BHP’s assumption of ongoing use of coal in steelmaking was a product of conservatism not a lack of climate ambition.

“We were very aware of the concerns around greenwashing,” he said.

After recent divestments, BHP now has just one energy coal mine in NSW that it plans to wind down over this decade. The fuel for power generation is fetching high prices due to Russia’s invasion of Ukraine disrupting supply, but the BHP chair did not regret the company’s reduced exposure.

“We don’t think that’s a good place for our shareholders to be invested in in the medium and long term,” he said.

BHP shares were down 1.5 per cent to $40.46 a share at close of trading on Thursday.

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