Every year The Australian’s John Durie asks some of the biggest names in Australian business five key questions about what’s coming in the year ahead.
Here, in his own words, is what BHP CEO Andrew Mackenzie sees ahead in 2020.
Read more from the 2019 CEO Survey.
What is the impact of government regulations on your company including those applying to the financial sector?
We have welcomed the government’s work to reduce regulation and increase the efficiency of the approval processes for major new projects in Australia. A more efficient approvals path combined with reducing regulation where it makes sense can only help the economy.
What percentage of company revenues are spent on research and development and how is your company using technology to improve performance?
Our investment in R&D is substantial but we do not account for it separately. Projects compete for capital alongside other investments in the portfolio and so our research and development effort is focused on value and returns. Technology is critical to the next wave of safety and performance improvement at BHP. We now have sensors attached to conveyors, trucks, ore cars and underground. The data collected is improving our mine plans, reducing unplanned maintenance and improving the consistency and stability of our operations, product quality and delivery to customers. This year we launched our Innovation mine in the Pilbara where we take ideas from our own labs and from other companies and test them in a real-world mine environment. These measures will improve safety, reduce emissions and unlock significant value for BHP shareholders.
What are the three major policy issues facing the country and what should be done about them?
Create nationally consistent skills and training system that is responsive to the needs of industry that will allow business to deliver high-quality jobs of the future in regional Australia.
Develop an enduring climate and energy policy that is able to meet the needs of business, while also making a contribution to the goals of the Paris Agreement.
Make Australia a more competitive place to invest with reform that will boost the nation’s capacity and upgrade capital works and, in turn, spur innovation and productivity. Fiscal policy reform, investment incentive and regulatory conditions that encourage business to invest in technology and create high paying jobs of the future across industry and across the country.
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