Very interesting analysis in AUST Business today (extract):
‘….Back in Australia, in two or three years time the major refining and smelting decisions at the core of the substantial expansion of the South Australian copper basin will need to be made. Once again, government will play an important role. The fate of the expanded project may depend on who wins the 2025 election.
Leaving aside particular measures, the overall aim of the government’s industrial relations legislation is to return unions to a position of joint management of enterprises. This will be achieved not by the vote of majority employees, but by the power of the legislation and government policy.
BHP and Rio Tinto are well aware of what that means in terms of mine productivity and costs, because that’s how mining was conducted for decades in the last century.
There is no way BHP wants to invest vast sums in South Australia or anywhere else in Australia and not be able to control the management.
When the legislation comes into operation on August 26 it is unlikely that there will be any big revolution. The unions will probably wait until after the 2025 election before exercising their legislated power.
By the time BHP is scheduled to press the “go button” in South Australia, it will know how the legislation is operating in practice. The smelters require vast amounts of energy to operate and desalinated water. BHP wants the freedom to choose whatever technology produces the best result. In the future, the options will be solar, wind, gas and nuclear. The technology behind all those sources is rapidly changing, so what makes sense today might be different 2027-28…
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