Energy debate ‘ not for pollies’
Townsville BHP Billiton chief Andrew MacKenzie says dogmatic politicians and lobby groups pushing a particular energy source are setting the nation up for failure and should “back off” from the energy debate.
The chief of the Melbourne- based mining titan said the public should be sceptical of parties claiming a single technology – be it renewables or coal – could solve the “energy conundrum” of producing cheap and reliable electricity while addressing climate change.
“A lot of the people are making those claims. I don’t want to be too impolite to them, but they have no basis to be so concrete about it,” Mr MacKenzie said yesterday. “If people get into a dogma that there is one solution, then that is where mistakes are made.”
Mr MacKenzie said BHP supported a technologically neutral approach to achieving affordable and reliable electricity while reducing carbon emissions.
“We need to let the market decide rather than saying it ( the solution) is ‘ more renewables’ or ‘ more coal’,” he said.
“Our frustration with politicians who think they know the answers, or lobby groups who know the answers, whether they are advocating one technology or one energy source, is that you don’t.
“In some ways it would be better for them to back off a bit.”
Mr MacKenzie made the comments in a shareholder meeting ahead of the miner’s Australian annual meeting in Melbourne yesterday.
The call for a less dogmatic approach to the energy debate came as shareholders voted against a resolution aimed at getting BHP to sever its ties with the Minerals Council of Australia.
BHP opposed the motion but is reviewing its membership of the nation’s peak mining lobby.
Disagreement between BHP and the lobby group over its advocacy for coal – and its response to the independent review into energy by Australia’s Chief Scientist, Alan Finkel – prompted the departure of the industry group’s chief, Brendan Pearson, in September. Mr MacKenzie told shareholders yesterday that the push in China to make industry such as steel mills more efficient by seeking out higher- quality commodity inputs was positive for the miner.
He also said prospective buyers had expressed interest in its US onshore sale and gas business, which it wants to sell within two years.
Mr MacKenzie, hosting his first annual meeting for the group in Australia, told the meeting that new blood would be brought onto the board.
“We are also taking steps at the board level to make sure we have the right capability and culture – that the board is fit- for- purpose,” Mr MacKenzie said.