BHP boss Andrew Mackenzie strongly defends his stance on climate change arguing BHP is a world champion of capitalism and to suggest otherwise is ridiculous.
He was speaking today at the results briefing in which the company declared it was the world’s lowest cost producer of iron ore (at below $US13 a tonne) and an earnings margin of 65 per cent last year.
Since Mackenzie took the reins in 2013 (when the company was $US7 a tonne behind Rio Tinto) its iron ore costs have fallen from $US27 a tonne to $US13 a tonne.
Last month, in a breakfast speech in London, he warned of the impact our dependence on fossil fuels could have on the earth’s climate.
Read more: Are BHP shareholders on board with crusading boss?
He has made it clear the company put itself into the debate because it believes in the science, sees the business risks and, as with any risk, the need to take out insurance.
Mackenzie has noted the company was spending $US400 million over five years to minimise the risks and that for customers the dangers are 40 times greater than for the company.
The BHP boss also made it clear he was advocating a gradual transition because going faster would inflict damage on poorer people who have played no part in causing damage to the climate.
According to Mackenzie, BHP was taking a practical middle-of-the-road approach but is happy to react now to avoid a more serious economic risks further down the track.
Read more: Here is the speech Mr BHP should have delivered
He has noted there is no single solution, so BHP needs to join the debate.
Mackenzie argues BHP is the ultimate capitalist company which never gets a subsidy, doesn’t worry about tariffs, has been cost effective and paid $US70bn in taxes.
He has said the company feels it will have to be more outspoken or government intervention will be necessary and we will all be worse off.
He has described as ridiculous suggestions that government should tell the company to shut up, arguing BHP should have a voice, a respectful voice.
Mackenzie also used today’s profit briefing to quell talk of an imminent departure saying he was enjoying the role.