Commodities demand to grow 75% by 2028
BHP Billiton chief executive Andrew Mackenzie has told an Asia Society lunch in Melbourne that global demand for commodities will grow by up to 75% over the next 15 years, driven mostly by Chinese urbanisation and the rise of the Asian middle class, according to the Australian Financial Review.
In his first speech in Australia since taking the top job at the mining major, Mackenzie has called for urgent reform to boost the nation’s productivity to ensure Australia can reap the opportunities on offer from the rise of Asia.
Mackenzie, who replaced Marius Kloppers in May, said while Australia was one of just a handful of countries that can deliver the volume of resources required, it faced tough competition from existing and emerging suppliers such as the US, Canada, Chile, Peru and African countries.
Australia must fix productivity to meet China's commodity demand, says Mackenzie
BHP Billiton chief executive Andrew Mackenzie has warned that Australia must increase its productivity to compete with existing and emerging producers if it is to supply China's continuing demand for commodities, according to The Australian.
More efficient regulatory systems, stable policies and a better industrial relations systems were needed, he said. He said most of the production challenge lay with industry, but that more action from and cooperation with government was needed.
“We must all get sharper at productivity,” he said. “(Government's) role is to provide efficient regulatory systems, foreign, fiscal and trade policies that encourage stability, and open markets.
“And a modern industrial relations framework that draws employees and employers on to the same page so that all sign up to a team that wants to win.”
Abbott’s vow to wipe mining impost buoys FMG
Fortescue Metals Group has praised the Coalition for promising to repeal the mining tax, after the company was unsuccessful in its High Court challenge to the tax, according to the Australian Financial Review.
In a statement to the ASX on Wednesday, Fortescue chief executive Nev Power said the company was disappointed with the unanimous decision by the High Court that the minerals resource rent tax was constitutional and did not discriminate between states.
