Andrew Mackenzie
Photo by: Bloomberg
JOHANNESBURG (miningweekly.com) – Mining giant BHP Billiton chief Andrew Mackenzie has punted the company’s growth projections to shareholders in Houston, saying that growth of some 16% in copper equivalent terms, was expected over the next two years.
On the first day of the company’s investor briefing, Mackenzie said that BHP’s productivity agenda had the potential to create more value than any of its other operational focuses.
“With all of our operations now on a common information management platform, we can replicate best practice and improve operational performance across the group. By generating more volume from our existing equipment and lowering unit costs, we will continue to build on the $2.7-billion reduction in controllable cash costs delivered in the 2013 financial year.”
Mackenzie pointed out that the company’s productivity agenda extended to its development projects, where BHP was pursuing a higher rate of return on incremental investment by significantly increasing internal competition for capital and driving down project costs.
“A 25% reduction in capital and exploration expenditure is planned for this financial year, and our level of investment will decline again next year,” he added.
“The quality and breadth of our portfolio will also allow us to further simplify our business, while retaining the benefits of diversification. A focus on our four key pillars and their major operations will ultimately deliver higher growth, higher margins and stronger investment returns.”