BHP Australia president Geraldine Slattery
BHP Australia president Geraldine Slattery has warned that Australia’s competitive edge in the resources sector is at risk without sustained investment in productivity, energy, and labour policies.
Speaking at the Australian Financial Review Business Summit on Tuesday, Slattery highlighted the shifting dynamics of global trade, heightened geopolitical tensions, and changing commodity demand as key challenges facing the nation’s resources sector.
“It’s clear the rules of the game are changing, and the competition is fierce,” Slattery told the summit. “Optimism, but not complacency.”
Slattery emphasised that Australia had long reaped the rewards of a thriving resources sector, as the world called for the country's abundant reserves of gas, iron-ore and coal. The country's extensive resources, proximity to end markets, and trade liberalisation had seen benefits flow to the national economy.
She pointed to global trends, including the transition to a lower-carbon economy and increasing digitalisation, as forces reshaping demand for minerals. “While the need for these resources remains strong, commodity demand is shifting to a new phase that supports the energy transition, a lower carbon economy, and increased digitisation,” she stated.
Slattery said that, all things considered, she was optimistic for Australia’s future. "We have many of the mineral deposits which will fuel the next phase of global development. We have a demonstrated capability in getting these minerals to market. We have strong and stable institutions, and good relationships with our key markets.
“These advantages are however not unique, nor will they prevail over time without continued investment,” she said.
Australia’s reliance on exports makes the country particularly vulnerable to global economic shifts. Slattery noted that the ongoing “flurry of trade moves and countermoves as countries seek to shore up industrial investment and secure mineral and energy supplies” underscores the need for Australia to remain competitive.
She urged policymakers and business leaders to focus on strengthening the country’s economic position. “What is within our control - investments and policy settings in productivity, in energy, in labour and capabilities - these are the settings that demand our attention as business, political and academic leaders,” she said.
Looking ahead, Slattery called for a national conversation on how best to maintain Australia’s standing as a global resources powerhouse. “I’m hopeful that a big part of the conversation we are going to have over coming days, and indeed the conversation we will have as a nation over coming months, is how best Australia can strengthen our competitive edge, lean into our natural strengths, and be clear on the settings and capabilities that will enable us to compete.”
