BHP's self rescue cut the target of 10 million tons of iron ore output in response to the call to "go to capacity"
2015 of the cold winter breath continued to 2016, from the domestic spread to the international, the whole mining industry is in the winter difficult to extricate themselves. After vale and Rio Tinto cut targets for iron ore production in 2016, the world's largest mineral company BHP did not survive, but also joined the ranks of energy reduction.
The 21 day, BHP Billiton announced the 2016 first half of the financial year operation Bulletin (as of December 31, 2015), will reduce 2016 production, about 10 million tons to 2.37 billion tons. The announcement is that the company is still in a state of discontinuation due to the impact of the levee on the tailing tailings in Brazil.
Mai Anzhe, chief executive of BHP Billiton (AndrewMackenzie), said: "in the 2016 half and fiscal year, the price of commodities dropped sharply, and the whole resource industry was under great pressure. We will continue to cut costs to ensure safe and efficient improvement in operating performance and further enhance our business strength. At the same time, in the current environment, we will aim to ensure a sound balance sheet so that we have enough financial flexibility to cope with future market fluctuations and make full use of the opportunity that copper prices and oil prices expect to rebound in the medium term.
In the second half of 2014, the global steel and mineral industry has both entered the cold winter of the market. Iron ore prices fell to the lowest level of about $30 in 12 years. At the same time, international oil prices have also fallen to a record low of $27, with copper prices falling by 29% over the same period last year.
BHP Billiton predicts that in the next few years, the price of iron ore and coal will not rebound substantially, but it is expected that copper and oil prices will rebound at the bottom of the bottom.
According to the above forecast, BHP said the annual production target of the three plates of the group's oil, copper and coal remains unchanged. The four major development projects in the field of oil, copper and potash are pushed forward.
In December 2015, Vale also cut the annual output of iron ore by about 10% to 340 million -3.5 tons in the year of 2016.
Not only is it a BHP family that cuts down spending and cuts ore production. One day, Rio Tinto, one of the four leading mining giants, also announced plans to increase its iron ore output by about 7% to 3.5 billion tons in 2016, a sharp slowdown compared with the 11% increase in 2015.
