More sideways action! And the big news of the day? BHP in full reverse gear:
BHP Billiton has slashed more than 150 million tonnes of annual iron ore production from its Pilbara iron ore expansion plans in response to the recent price shock in the key steel-making raw material. The cuts are potentially worth $US18 billion ($17.36bn) at current spot prices.
In closed presentations to investors in Sydney yesterday, BHP confirmed a near-term Pilbara production target of 220 million tonnes of iron ore and hinted that reducing costs and easing bottlenecks could improve that target “significantly”.
Apart from alluding to a potential of 300 million tonnes that could be achieved by modest expenditure on its rail system, BHP dropped all references — in slides lodged with the stock exchange — to the 450 million tonne aspirational target it set 14 months ago.
Don’t say I didn’t tells ya!
