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.
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