Tag: BHP Billiton

Iron ore to suffer five year decline in value

Iron ore to suffer five year decline in value

Image: AngloAmerican. BY CAMERON DRUMMOND STEADY decline in iron ore prices is expected over the next five years, with a targeted drop in production from the world’s largest steelmaker China and new ore production from mega projects in Australia and Brazil sparking oversupply fears. Surging iron ore prices during 2016 saw the commodity reach more than $US80 per tonne (t) for the first time since October 2014 after hitting a record low of $US38.50/t in January last year. The 62 per cent Fe Qingdao spot price had jumped more than 100 per cent, and by February 2017 had peaked at $US94.86 – its highest level since 2014 – according to a Metal Bulletin report. The price rally – which consistently…

BHP boosts copper and oil exploration spend

BHP boosts copper and oil exploration spend

BHP Billiton’s Shenzi operations in the Gulf of Mexico. By Elizabeth Fabri BHP Billiton’s will increase exploration expenditure to $US900 million in the next financial year, accounting for 18 per cent of its overall capital budget. A value-focused approach to exploration was announced on 27 June at Citigroup’s Mining Exploration Day in Sydney by BHP Billiton head of geoscience Laura Tyler, who outlined the company’s plan to enhance its tier 1 portfolio by focusing on copper and oil. “We are investing at a time when most in our sector continue to reduce discretionary spend,” Ms Tyler said. “We are also challenging existing paradigms with a scientific based and disciplined approach to exploration. “We have reduced exploration operating costs by 70 per cent since…