Skip to main content

BHP Billiton well positioned

Published by
World Coal,

BHP Billiton has defined how the company is well positioned to create value through the cycle after the demerger of South32.

New efficiency targets for BHP Billiton’s major businesses have been provided by Chief Executive Officer, Andrew Mackenzie. According to the CEO, the company’s financial strength and development projects would support its progressive dividend over both the short and long term.

“In recent years we have made great strides towards becoming the most efficient supplier of our chosen commodities and secured productivity gains of nearly US$10 billion. We believe we can go even further with a simpler portfolio and improve margins by reducing costs more deeply than the competition,” he said.

Capital and exploration spending will decrease to US$9 billion in the 2016 financial year from US$12.6 billion in 2015, according to the CEO. The drop echoes ongoing improvements in capital productivity along with the deferral of some shale developments.

“We will continue to invest in our high quality projects to create long term value and support dividend growth. The iron ore and metallurgical coal markets are currently well supplied and we do not expect to invest significantly more in these businesses at this time. Instead our capital will be focused on the commodities we believe will have attractive supply fundamentals,” he said.

In conclusion, he said: “Our portfolio of low-cost assets is unrivalled in scale and quality and we have the sector’s strongest balance sheet. Together these give us resilience and flexibility in volatile markets. As we improve our productivity and invest in high-return projects through commodity cycles, we expect to offer our shareholders superior returns.”

Adapted from press release by Joseph Green

Read the article online at:

You might also like

Bens Creek provides underground mining update

Bens Creek Group plc, the owner of a metallurgical coal mine in North America supplying the steel industry, has commenced underground mining for the production of High Vol A coal.


Embed article link: (copy the HTML code below):