On Wednesday, the president of the iron ore division of BHP Billiton said that the miner intends to boost its output by nearly 20% while it also cuts costs.
Jimmy Wilson, president of BHP Billiton’s iron ore division, stated that the Company did not need to spend huge amounts of capital to boost capacity. Instead, he expects modest improvements to harbours, railways, mines, and other existing infrastructure to do the trick.
BHP predicts that annual iron ore capacity will rise to 220 million tonnes in 2014 and 260 million tonnes at an indefinite point in the future.
According to Mr. Wilson, the Company aspires to hit that mark through modest capital investments to existing infrastructure across the business.
Iron ore is a key ingredient in making steel. The commodity suffered sheer declines in spot prices in recent years.
The big iron ore miners in Australia were greatly affected by the weak price of the commodity. Many companies had to roll back grand plans of expansion and implement cost cuts.
Back in August 2012, BHP Billiton sidelined its $20 billion project to build an iron ore harbour at Port Hedland in Western Australia. The project was expected to double capacity at the mineral-rich site, which currently produces 220 million tonnes of ore.
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