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Former coal man turned environmental activist vies for BHP board seat

A former coal and oil industry executive who is now an environmental activist is trying to change BHP Billiton from the inside out.

The former resources industry insider Ian Dunlop wants to get onto the BHP Board, but it could be a battle. At last night's annual investor meeting in London the world's biggest miner told shareholders to vote against his election.

The vote will be completed next month in Perth at the company's Australian annual general meeting.

Here's resources reporter, Sue Lannin:

SUE LANNIN: BHP Billiton chairman Jac Nasser is an old hand at annual general meetings. He's used to swatting off critical questions about the big miner's environmental record and financial performance.

BHP SHAREHOLDER: I ask you to listen to the call by civil society in central Kalimantan which is rejecting that railway that will drive a spear into the heart of the forest, the rain forest in central Kalimantan.

JAC NASSER: We take this very seriously and we know that you would not travel from Indonesia to talk to us if it wasn't an issue that you felt extremely strongly about.

SUE LANNIN: But this time around Mr Nasser faced a different challenge.

JAC NASSER: Item 23 concerns Mr Dunlop who has been nominated by an individual shareholder outside the usual nomination and governance committee process. He is not endorsed by the board.

SUE LANNIN: Ian Dunlop worked for energy giant Shell for decades. Now he is a climate change activist vying for a seat on the BHP Billiton board.

IAN DUNLOP: BHP actually is probably more advanced than most companies in basically addressing the questions of climate change. But the reason for my interest in this is actually the problem is far greater than I think anybody is really acknowledging.

SUE LANNIN: The ABC understands than fewer than 4 per cent of votes cast at the London AGM were in support of Mr Dunlop. The result will be finalised next month when Australian investors have their turn to cast their ballot at the company's local AGM in Perth.

Some investors weren't happy with Mr Nasser's recommendation.

BHP SHAREHOLDER 3: But I would like to express my disappointment in your rejection of Ian Dunlop's board nomination. I think his perspectives would add significant value to the BHP board.

SUE LANNIN: It was the first shareholder meeting for BHP Billiton's new boss, Andrew Mackenzie. He took over from former chief executive Marius Kloppers earlier in the year after the big miner had to make more big write-downs on the value of its businesses.

Mr Mackenzie was positive about the future, saying that demand for commodities would grow as China urbanised.

ANDREW MACKENZIE: Looking ahead, the future for our industry is bright. Over the next 15 years global commodity demand is expected to grow by up to 75 per cent as millions move from the Chinese countryside to cities.

SUE LANNIN: The BHP Billiton executives were also asked about the big miner's loss of legal immunity in Papua New Guinea over environmental damage caused by the Ok Tedi copper and gold mine.

Mr Mackenzie thinks the big miner is not liable for any compensation claim.

ANDREW MACKENZIE: The actions of the government, of course, are very disappointing. Our advice is it's highly unlikely that more can be claimed so there is no increased risk for shareholders or very, very small.

TONY EASTLEY: That report from our resources reporter, Sue Lannin

Source: www.abc.net.au