BHP Won’t Invest In New Iron Ore Mining Projects “For Decades”
BHP won’t be investing in any new iron ore mining projects “for decades”, according to the company’s President Iron Ore, Jimmy Wilson.
Mr Wilson made the comment at the Global Iron Ore and Steel Forecast Conference held in Perth today.
“We can deliver high-quality product that our customers value, through existing hub infrastructure, at a low operating cost. Our footprint also means that we won’t need to invest in new mining hubs to sustain current operations for decades,” Mr Wilson said.
The comment comes hot on the heels of news overnight that the going price of iron ore has sunk to $US58 a tonne – a new six year low.
However Mr Wilson seemed unfazed by the news telling conference delegates that his division was on track to achieving unit cash costs of less than US$20 per tonne. According to Mr Wilson his team would achieve this through, “…a relentless pursuit of equipment availability and utilisation, efficient procurement and supply management and capital and workforce productivity.”
“We have no major projects in execution and our growth pathway will be achieved by continuing to make our existing infrastructure more productive,” Mr Wilson said.
“With this strategy we are maintaining Australia’s competitive position in the global market and providing the revenue, royalties, employment and innovation that is so important for this country’s future.
“The effectiveness of our approach is validated by our robust financial and operating results despite the challenging market conditions.
“Not only is our concentrated resource position a competitive advantage, but the quality and high-grade characteristics of our orebodies translates into premium products in the market.
“The majority are high Fe Brockman and Marra Mamba ores, with low impurities and a high proportion of lump, around which we optimise our mine plans to maximise our profit margin,” Mr Wilson said.