BHP chair points to Canada tax incentives in call for investment reforms
BHP•BHP Chair Ross McEwan urged Australia to consider tax incentives such as Canada’s deductions for capital investments and mine development costs to compete for investment. At BHP’s AGM, he declined to set a 2040 emissions target and said uranium was not yet large enough to be a core commodity.
1. Call for investment reforms
McEwan said Australia must compete for capital and should pay close attention to Canada’s tax incentives. Canada allows businesses to immediately deduct the full cost of eligible capital investments and miners to deduct mine development costs in the year they are incurred, he said. He also cited Argentina and Chile as countries with similar measures.
2. Emissions target campaign
ACCR Chief Executive Brynn O’Brien said investors would campaign over the next year for BHP to set a 2040 emissions reduction target. BHP aims to cut operational greenhouse gas emissions by at least 30% from 2020 levels by 2030 and has a longer-term goal of net zero by 2050. McEwan declined to commit to a 2040 target, saying BHP was focused on growth projects and reducing its reliance on diesel.
3. Uranium not a core focus
McEwan said BHP would take a more serious look at uranium in the future, but the market was currently “too small” for it to pursue the metal as a core commodity. BHP produces around 5% of global uranium supply from its South Australian operations.
