BHP chairman says miner wary of trade war fallout but retains faith in long-term commodities demand

BHP remains cautious about any trade war fallout despite it not yet feeling a direct impact, miner’s chairman tells AGM.

BHP chief executive Ken MacKenzie addresses shareholders at last year’s BHP AGM. Picture: AAP

BHP chairman Ken MacKenzie says the mining giant remains cautious about the potential short term fallout from global trade tensions, despite the company not yet feeling a direct impact.

“Anything that threatens the stability of the global trade system creates uncertainty for everyone — for governments, for communities and for business,” Mr MacKenzie said in a speech due to be delivered to BHP’s annual general meeting in Adelaide this morning.

“Trade restrictions pose a real threat to economic growth by diverting trade flows, affecting prices and discouraging investment.”

He said BHP’s (BHP) faith in long-term commodities demand was unshaken.

BHP chief Andrew Mackenzie said punitive tariffs were not the answer.

“We must all become guardians of openness and broker alliances to prevent the damage trade rifts inflict,” Mr Mackenzie said in speech notes released before the meeting.

“I expect that the current assault on the global trading system will jolt countries outside of this dispute into action. This is not a time for complacency, when the fabric of global trade frays, we must pull together and administer needle and thread.”