BHP Billiton expects to lower costs in its Australian mining operations by a further 10 per cent and has forecast the division will deliver $US1.6 billion ($A2.2 billion) in productivity gains over the next two years.
At an investor briefing in Adelaide on Tuesday, BHP Minerals Australia president Mike Henry said the company had reduced costs at its Australian mining operations over the past five years and would continue to find savings by bringing in expertise from other industries and better leveraging technology.
Mr Henry said the mining giant’s Australian assets underpin current margins and future investment opportunities.
“The quality, scale, concentration and location of our assets support improvement initiatives, compelling latent capacity options, efficient technology deployment and attractive investment opportunities,” Mr Henry said.
“With our global technology initiatives and asset-level programs to unlock resources and lower costs, we expect our Australian mining operations to deliver $US1.6 billion of additional productivity gains over the next two years.”
He also revealed the company had a string of medium-term investment opportunities – with average returns potentially exceeding 40 per cent – which are well placed to compete for capital.