BHP quits coal lobby body and questions industry groups

BHP Billiton will remain a member of the Minerals Council of Australia for now but has decided to exit the World Coal Association over differences in climate and energy policy.

The stance follows a push by BHP investors in September for the company to review its relationship with industry bodies advocating “obstructive or misleading” policy positions on climate change and energy.

The Australasian Centre for Corporate Responsibility ( ACCR), a not- for profit association, filed a resolution at BHP’s annual general meeting seeking to end the Minerals Council membership, which attracted about 9 per cent of votes.

In a report published yesterday, BHP said a review of 21 industry association memberships showed it held materially different positions over climate and energy policy with three lobby groups – the Minerals Council, the US Chamber of Commerce and the World Coal Association.

Key among the issues is the Minerals Council’s push for energy policy that prioritises costs and reliability over emissions reduction and encouraging coal power plant development over other sources.

Despite this, BHP said it had decided to remain with the Minerals Council for now, given the high level of benefit it derived from the membership.

It will, however, ask the Minerals Council to refrain from policy advocacy in these areas and has threatened to review membership in 12 months if the lobby group does not agree to this.

The miner said it had decided to exit the World Coal Association, given the differences and the narrower activi- ties that benefit the company.

BHP said it would discuss the nature of its policy differences with the US Chamber of Commerce before taking a final decision by the end of March. Responding to BHP’s decision, ACCR executive director Brynn O’Brien said it was extraordinary that the world’s biggest miner has signalled an intention to exit the world’s peak coal lobby, the World Coal Association.