BHP under attack

Press, 1 February 1983, Page 30

BHP under attack

PA Canberra The Australian Federal Labour Party shares the N.S.W. government’s fear that BHP may not maintain the Australian steel industry after its SUS24OO million take-over of Utah International ' Labour's spokesman for I finance and trade. Mr StewI art West, said yesterday that he shared the fears of the N.S.W. Premier. Mr Neville Wran. that the industrial giant might now either renege completely on its responsibility to maintain an Australian steel industry "or run down steel making capacity to levels unacceptable to a Federal Labour government.” Mr West said it may be necessary for a future Labour government to "consider a new ownership struturein Australian steel." But BHP reiterated its previous statement that the take-over would not affect BHP jobs in the state’s coal mines. BHP’s Public Affairs Director. Mr Peter Maund, said: “We were a bit surprised by Mr Wran's reported reaction to the purchase." “It seems that he thinks

our acquisition of Utah will somehow influence jobs in our N.S.W. mines. This is not so." he said. He repeated the assurances of BHP’s chairman. Sir James McNeill, after the Utah announcement, that the purchase “has no bearing at all on our N.S.W. properties." Sir James had also strongly denied that the move meant the company was getting out of steel making and abandoning N.S.W. On the week-end. Mr Wran said his Government would not stand by while BHP inherited a vast coal production and allow it to put its steel interests on ice. He backed this by calling for an inventory of BHP’s coal mining leases in the state. The state Government will examine the extent to which the leases are being used to mine coal for the state's steel industry, where thousands of workers are being retrenched. Mr Maund emphasised that the take-over of the dominant Australian coal exporter’s mining interests would, have no effect on the mines themselves. ' "The fact is that these are producing mines, they are going concerns with fixed contracts and I don’t see why

Mr Wran thinks there will be changes with the new consortium," he added. . The huge purchase from General Electric of United States will give BHP control over Utah Development Company plus major coal interests in North and South America. In Australia, apart from Utah’s Bowen Basin coking coal deposits in Central Queensland, the take-over will include a one-third share of the Mount Goldsworthy iron ore venture in the Pilbara. Other overseas interests include steaming coal properties in New Mexico. Kentucky. and West Virginia, iron ore sands in New Zealand. iron pellet operations in Brazil, and a shipping fleet of around 10 bulk carriers. Meanwhile. BHP announced in its monthly report that temporary shutdowns in Broken Hill Proprietary Co. Ltd's steel and coal divisions were responsible for lower production. Because of market downturn. all steelmaking plants applied temporary shutdowns which cut production to 409,000 tonnes, compared with 556,000 tonnes in December. 1981 — 7 per cent below budget.