Australia’s biggest miner, BHP, has put the Minerals Council of Australia on notice, threatening to cancel its almost $2m yearly membership if it does not cease campaigning on climate and energy issues.



The warning came in BHP’s review of industry associations, in which it lists the ways BHP’s position differs from that of the MCA. BHP also considers its membership of 20 other industry bodies, declaring it will cancel its membership of the World Coal Association.

The warning to the Minerals Council is likely to be taken seriously, given BHP provides the MCA with 17% of its revenue from membership fees. Additionally, earlier ructions between BHP and the MCA’s position on climate and energy were reportedly the cause of the sudden departure of the MCA’s previous chief executive, Brendan Pearson, in September.

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BHP committed to the review in September following a resolution lodged at its AGM by shareholders, calling for the company to terminate its membership of the MCA. That resolution caused a stir, receiving about 10% of shareholder votes, and was followed just days later by Pearson’s resignation.

In the review, BHP noted the Minerals Council of Australia said it supported a “technology neutral” approach to energy policy, but at the same time publicly called for technologically-specific market interventions by government, in favour of coal.

“For instance, the MCA has called for governments to use existing or new mechanisms to fund a new baseload coal plant in the Latrobe Valley,” the BHP review notes.

“Similarly, the MCA has suggested that the emissions intensity threshold of the clean energy target recommended by the Finkel review should be set relative to technology specific factors (ie to accommodate new coal generation).”

BHP also notes the MCA has argued energy reliability and affordability ought to be prioritised over and above emissions goals.

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However, BHP concluded it received considerable benefit from being a member of the MCA, and so would not immediately terminate its membership. Instead, it will formally request the MCA refrain from policy advocacy on climate and energy. If it does not do so within a year, BHP will reconsider its membership of the MCA.

In the review, BHP noted its membership fees amount to just under $1.9m per year, and make up 17% of the MCA’s revenue.

BHP found an even stronger list of material differences between its positions and those held by the US Chamber of Commerce on climate and energy, including the chamber’s views that keeping global warming under 2C is unachievable and that the Paris Agreement is ineffectual.

But again, BHP concluded that it gained significant benefit from membership of the chamber, and so would request further information from it before making a final determination about whether to maintain its membership.

When reviewing membership of the World Coal Association, BHP found it gained relatively little benefit from it since the WCA was “primarily focused on information provision”. It concluded it had formed a preliminary view that it would terminate its membership of the WCA, but would seek a response from the WCA to this determination before making it final.

We will continue to call out material differences where they exist

BHP’s chief external affairs officer, Geoff Healy, said while no industry association represents the views of any single member, they are important for sharing best practice, the development of technical standards and policy, and to bring together technical expertise and experience.

“This review makes clear the principles for our ongoing participation in industry bodies. While we won’t always agree with our industry associations, we will continue to call out material differences where they exist and we will take action where necessary, as we have done today.”

“Importantly, we will also continue to communicate our own views directly to investors, governments and civil society and we will redouble our efforts to engage, clearly and constructively, with our industry associations to positively influence the position they take on matters important to our company.”

Healy said publication of Tuesday’s report demonstrated BHP’s support for action on climate change and commitment to transparency.

A spokesman for the Minerals Council of Australia said “BHP has been a valued member of the Minerals Council for many years, and we look forward to that relationship continuing in the future.”