Pete O'Connor's questions to BHP Group (BHP) leadership • H1 2017
Question
Pete O'Connor asked for commentary on sovereign risk in Australia, given recent issues with state-level royalties and power supply, and requested more detail on the cost increase at Queensland Coal.
Answer
CFO Peter Beaven explained the Queensland Coal cost increase was due to the closure of the low-cost Crinum mine, deliberate trucking costs to maximize high margins, and weather impacts. CEO Andrew Mackenzie addressed sovereign risk by stating that while challenges exist globally, Australia remains a very attractive place to do business and invest relative to many other countries.