BHP Billiton to slash copper production costs, increase output

BHP and Rio Tinto’s Escondida copper mine in Chile's Atacama Desert is the world's largest copper-producing mine.

BHP Billiton (ASX:BHP), the world’s largest mining company, is making a bold bet on copper by deciding to ramp up output while slashing production costs.

The company’s copper boss, Daniel Malchuk, said Tuesday that BHP expects to lower production costs to $1.08 per pound during the 2017 financial year, from a projected $1.21 per pound in the year ending June 2016.

Reaffirming the miner’s optimism when it comes to the long-term future of the industrial metal, Malchuk noted that while near-term oversupply is weighing on current prices, BHP counts on attractive long-term fundamentals that continue to support a positive outlook.

“Over this period, the release of latent capacity across the portfolio will also help annual group copper production grow to approximately 1.7 million tonnes at very low cost,” he said in a presentation.

More to come…

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