BHP Says 2017 Iron Ore Output May Be Flat, Cuts Oil Spending
- Fourth-quarter iron ore production fell 7% amid rail program
- Raw materials prices remain about 50% lower than a 2011 peak
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BHP Billiton Ltd., the world’s biggest mining company, forecast that iron ore production could be flat this fiscal year, while it sees petroleum output declining as much as 17 percent and the prices of its top earning materials remaining volatile.
Capital spending on oil assets will plunge 44 percent to about $1.4 billion in the year, after petroleum output slumped 11 percent to 56 million barrels of oil equivalent in the three months ended June 30, Melbourne-based BHP said Wednesday in a statement. Iron ore production fell 7 percent to 55.6 million metric tons in the quarter.