Incoming BHP boss calls on Australia to mend its ways

Australia needs to adopt more business-friendly policies if it wants to compete for global investment capital, according to the incoming boss of the world's biggest miner. Brandon Craig, who was named on Wednesday as Mike Henry's replacement as chief executive officer at BHP, said the mining giant wanted Australia to be a successful nation that delivered prosperity for everyone who lived there. "But it is very clear when you engage across countries in different parts of the world that a lot of these countries are putting in place very, very attractive incentive regimes to attract investment, and ultimately Australia has to compete with that," he said. A South African-born naturalised Australian citizen, Mr Craig said he intended to advocate for policy settings that enhanced the long-term prosperity of the country. "Because ultimately, that's what's going to be best for the country, best for the nation and I want to see Australia succeed," he said from the group's Melbourne headquarters on Wednesday. Australia's biggest opportunities for reform had to do with energy and labour policies, and providing stability. He pointed to Queensland, where BHP has frozen new investment because of a 2022 coal royalty regime the company said made its operations uncompetitive. "Not changing the rules of the game ... is going to be really important," Mr Craig added. BHP lost a Federal Court case in December that forced it to pay its labour-hire workers the same as its direct workforce, resulting in $30 million more for 1100 workers engaged through a subsidiary. Mr Craig will step into his role on July 1, replacing Mr Henry, who is stepping down after six and a half years at the helm. A 25-year veteran of the company, the incoming chief executive is currently BHP's president for the Americas, including operations in the United States, Canada and South America. He previously led BHP's Western Australian iron-ore business, which the firm said he had improved to grow its lead as the lowest-cost, highest-margin major producer of the commodity in the world. Mr Craig will receive a base salary of $US1.9 million ($2.7 million), with the potential to make up to $US12.5 million ($17 million) extra in bonuses. Under his leadership, BHP's primary focus will be on its existing portfolio and it won't be looking to grow through mergers and acquisitions, unless an exceptional opportunity arises. Mr Craig also plans to strengthen the company's relationships with customers, particularly in China. There, the company is engaged in high-stakes negotiations with China Mineral Resources Group, the state-owned iron-ore buyer that Beijing created in 2022 to undermine the pricing power of sellers such as BHP and rival Rio Tinto. "I won't get into the specifics (but) ... everybody understands the importance of those negotiations and the value that is connected to them," Mr Craig said. "So during these next few weeks, we will definitely be getting across to China to engage." Mr Henry will continue to provide support to Mr Craig through November 30. Under the former's leadership, BHP sold off its petroleum business to Woodside Energy, unified its dual-listed structure and strengthened its copper exposure. RBC Capital Markets analyst Kaan Peker said the appointment was positive for the company, describing Mr Craig as a long-tenured BHP executive with deep operational experience across both iron ore and copper. In early afternoon trading, BHP shares were up 0.6 per cent to $50.03.