BHP Billiton Raises Its Savings Target to $US4bn

BHP Billiton Raises Its Savings Target to $US4bnBHP Billiton Ltd. the world's largest copper mine operator , is considering the options to increase the output along with its forecasts that power and water shortfall for some of the producers will prompt a shortage in the market starting from 2018.

Today, BHP, based in Melbourne said in a statement, "Industry production will be increasingly challenged by structural factors including grade decline and higher strip ratios." It also said that the availability of water and power will also be a major factor that will lead to reduced amount of supply in some of the countries.

Wood Mackenzie Ltd. says that, approximately 4.5 million metric tons of fresh production facilities will be required to meet the demand for copper by 2022. By the end of the financial year in 2017, BHP has already planned to take advantage of $US3.5 billion from its annual productivity gains resulting from its businesses globally. However the company now says that it will raise it to $US4 billion. It also said that about $US2.6 billion of the funds will come through cost cutting.

BHP also mentioned that the company was weighing up plans of doubling the copper production at the Olympic Dam operations in South Australia to 450,000 tonnes yearly through a underground expansion by the mid of the next decade. The present annual production rate of the Olympic Dam is 200,000 tonnes of copper yearly.