Why BHP Billiton is optimistic about commodities

By Harry Allan

BHP Billiton is confident that commodities markets will recover and has reaffirmed the majority of its full-year production guidance segments, although it is holding off on copper.

The mining giant reported that its September quarterly production was in line with expectations; output for iron ore and metallurgical coal was steady, but the company did report lower volumes in petroleum, copper and thermal coal.

BHP Billiton CEO Andrew Mackenzie said “We have seen early signs of markets rebalancing. Fundamentals suggest both oil and gas markets will improve over the next 12 to 18 months. Iron ore and metallurgical coal prices have been stronger than expected, although we continue to expect supply to grow more quickly than demand in the near term.”

BHP posted a record full-year loss in August off the back of tumbling oil and iron ore prices, but promised to boost volumes across divisions as it remained confident about the longer-term outlook for its commodities.

At the start of October, the mining company announced that it would renew its expansion plans for its petroleum business; recovery in oil prices and cost reductions made project investments projects more attractive.

Business Review Australia & Asia's October issue is live. 

Follow @BizReviewAU and @MrNLon on Twitter. 

Business Review Australia is also on Facebook. 

SOURCE: [Perth Now


Featured Articles

Welcome to the New Age of the CISO

HE Dr Mohamed Al-Kuwaiti, Head of Cyber Security, UAE Government and Dr Aloysius Cheang, Chief Security Officer Huawei UAE, on the new age of the CISO

Making the UAE the world’s strongest digital fortress

His Excellency Dr Mohamed Al-Kuwaiti, Head of Cyber Security, UAE Government, on visionary plans to build the world’s most secure digital society

World Mental Health Day – 10 apps to improve wellbeing

Employers should recognise the growing use of apps to help support mental health – here are 10 to consider on World Mental Health Day

Exec interview: Brook Sims, COO, MAC Diversity Recruiters

Leadership & Strategy

Best new books that will make you a better leader

Leadership & Strategy

5 Mins With: Jeff Li, founder and CEO of Shoplazza

Leadership & Strategy