At a conference in Western Australia, Geraldine Slattery, head of BHP Australia, delivered a pointed call to the federal and state governments: streamline environmental approvals, rein in energy costs, and unlock productivity gains—or risk Australia losing its status as a top mining destination.

She cautioned that permitting delays, elevated taxes, and labour productivity at a sixty-year low are increasingly undermining investment appeal.

Slattery warned that rivals such as the United States are advancing policies to lure mineral capital away from Australia, and that the country must modernise its regulatory settings to keep pace.

Among her prescriptions: overhaul environmental legislation to reduce duplication across Commonwealth and state jurisdictions, introduce risk-based permitting timelines, and adopt fresh tax incentives to encourage long-term infrastructure investment.

Beyond red tape, she stressed that Australia’s persistently high energy costs pose a serious drag on mining competitiveness.

BHP’s Chief Executive Mike Henry echoed her concern in recent remarks to shareholders, noting that electricity in Australia is more expensive than in rival mining jurisdictions, undercutting returns.

He urged that Australia deliver “stable, reliable and affordable energy” as it transitions toward net zero emissions.

Slattery also underscored the need to embrace automation, artificial intelligence, and improved workforce training to break out of Australia’s lagging productivity trend.

Without such reforms, she said, wage pressures and cost escalations could jeopardise returns across the resource sector.

Despite the warning, BHP continues investing in its Australian operations.

The company has committed over A$840 million to its Olympic Dam copper project in South Australia, and is exploring an expansion that could double output by mid-2027.

Nonetheless, its calls for reform make clear that regulatory friction and high costs are pressing obstacles to future growth.

The federal government is reportedly preparing new environmental legislation to be introduced later this year, while recent interim reports from the Productivity Commission have proposed changes to tax and regulation aimed at bolstering Australia’s investment case.

Meanwhile, the proposed reforms may intensify pressure on state governments, notably Queensland, which faces growing critique over its coal royalty regime.

BHP’s critique comes amid a broader industry push to align Australia’s policy settings with global mining competition.

As global demand for critical minerals intensifies, the stakes for regulatory agility and energy cost competitiveness have never been higher for Australia’s resource industry.