BHP to steer clear of new investment in Queensland

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The mining giant said Queensland’s new royalty regime made it less attractive for future investment, but it would continue to expand existing operations.

BHP chief executive Mike Henry said the global miner would not make any new greenfield investment in Queensland after the state’s controversial newWhile Treasurer Cameron Dick has threatened to cancel BHP’s mining leases in Queensland unless it continued to invest in the state, the BHP boss acknowledged the company would continue to expand its existing operations to take advantage of strong metallurgical coal prices.

“The only thing I would note is we are continuing to invest in these Queensland businesses. BMA [BHP Mitsubishi Alliance] is investing over a billion dollars a year in keeping these operations going because we do see the business as attractive.” Mr Dick continued his attack on the global miner on Tuesday, saying the Palaszczuk government would follow through with its threat if BHP did not complete its promised investments in Queensland.

But he warned that the Labor government expected big miners to follow through on promised investments or they could face financial penalties or have their leases cancelled.

 

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