NAVIGATING THE CROSSROADS

IN AN EVER-CHANGING AND EVOLVING LANDSCAPE, HOW DOES THE AUSTRALIAN MINING INDUSTRY TACKLE GROWING COMPETITION AND INCREASING PRESSURES TO DECARBONISE?

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BHP president Australia Geraldine Slattery has painted the current mining landscape in Australia as being at a defining moment.

Speaking at the QUT Business Leaders Forum in November, Slattery said Australia “sits at a crossroads” amid strengthening global competition.

“Competition grows globally,” she said. “The developing world is full of innovation. There is an abundance of investment capital in every region. Emerging countries are investing in the skills and capabilities of their own people. Europe, the US, and Australia all face new competition.

“And then there are the business headwinds: inflation, labour shortages, economic uncertainty, threats to shipping routes, (and) regulatory barriers in every industry.

“All this amounts to a world that is harder – not easier – to navigate. A world where even decades of past growth and success can no longer be taken for granted.”

However, there is work that can be done to maximise investment and activity in the modern mining world.

According to PwC national mining leader Marc Upcroft, it starts by achieving alignment between key stakeholders – even if it is challenging.

“It’s hard to get all of them lined up,” he said. “Even if they are, the next challenge will be to keep them aligned.”

For Upcroft, the most pressing alignments include mining companies and markets, government support, and global economic stability.

“Getting the government properly in a zone of long-term, genuine support and creating the right environment for economic activity generally is critical,” he said.

Deal alignment in a changing market

The surge in mining transactions, which totalled $27 billion in the 2023–24 financial year (FY24), has been a major factor shaping company strategies.