The world’s biggest iron ore miners will be able to withstand the expected plunge in prices because their race to cut production costs has dramatically lowered the industry’s margin pressure point, allowing them to keep fueling a cash juggernaut that’s revived the mining sector. More than 90 percent of producers in the global seaborne market can generate profits at a benchmark price of $60 a metric ton, Adrian Doyle, a Sydney-based senior consultant at researcher CRU Group, said by phone.
Category: BHP Billiton
Iron Ore Rally Starts to Crack as Capital Economics Sees $45
Iron ore’s rally is showing signs of cracking. After a drumbeat of warnings that the gains won’t last, the commodity is heading for the biggest weekly slump in almost four months amid rising concern about the underlying strength of demand in China at a time of still-rising supplies.
BHP First-Half Profit Soars on Price Rally to Beat Estimates
BHP Billiton Ltd., the world’s biggest mining company, reported first-half profit jumped as commodity prices surged on increased demand from China, signalling growing confidence in the rally with a better-than-expected dividend and a bond buyback. Underlying profit rose to $3.24 billion in the six months through Dec. 31, Melbourne-based BHP said in a statement Tuesday.
BHP Vows Legal Action at Top Copper Mine After Group Enters Site
BHP Billiton Ltd., the owner of the world’s biggest copper mine known as Escondida, said it will take legal action after a group of more than 300 people entered the mine site during a strike and forced some contractors to abandon the compound. People wearing masks entered the mine site at 6 p.m. Santiago time on Saturday, threatening the staff of contract companies and setting off fire alarms, causing damage, the Melbourne-based company said in an e-mailed statement Sunday.
BHP Union Boss Readies for Months-Long Strike Amid Wage Deadlock
The head of the union at the world’s biggest copper mine says he’s never seen owner BHP Billiton Ltd. this reluctant to cede ground over wages. That’s why he’s preparing for a long strike.
Would-Be Kingmaker Calls Out Iron Giants in Ore Tax Battle
The world’s biggest mining companies producing iron ore from Australia aren’t paying their fair share in taxes, according to a lawmaker who wants a 20-fold raise in a state levy that’s been unchanged since the 1960s and the era of imperial pounds, shillings and pence. The proposal has “overwhelming” support and Rio Tinto Group and BHP Billiton Ltd.’s objections don’t stack up, according to Brendon Grylls, Western Australia’s Nationals party leader.