BHP Billiton Targets More Cost Cuts in Australia
28 November 2017 - 9:14AM
Dow Jones News
By Robb M. Stewart
MELBOURNE, Australia--BHP Billiton Ltd. (BHP.AU) aims to cut
costs further across its Australian mining operations, targeting
another 10% drop in unit costs over the medium term and US$1.6
billion in additional productivity gains over the next two
years.
In a presentation to investors in Adelaide on Tuesday, BHP
minerals Australia president Mike Henry said large, long-life and
low-cost operations in the country underpinned the resources
company's current margins and options for the future. He said the
company had sustainably reduced costs over the past five years but
had further to go.
The improvements are expected to come through initiatives
including strengthening BHP's maintenance capability and processes
and through a global technology push, Mr. Henry said.
He added the company had a number of medium-term investment
opportunities that, if approved, have average returns that could
exceed 40% and so are well placed to compete for capital within the
company.
Write to Robb M. Stewart at robb.stewart@wsj.com
(END) Dow Jones Newswires
November 27, 2017 16:59 ET (21:59 GMT)
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