Australia-based miner BHP Billiton has announced that it is targeting a further 10 percent reduction to below US$90/mt in unit costs at Queensland Coal in the financial year 2014-15. Productivity in the coal business has improved significantly in the last two years, with unit costs cut by 37 percent in metallurgical coal.
The company stated that it increased its target for productivity gains within its core portfolio and provided new guidance that highlighted its ability to reduce investment without compromising growth.
"We are reducing the cost of bringing on new production and can lower our investment without slowing volume growth. As a result, we will reduce planned capital and exploration expenditure from US$14.8 billion to US$14.2 billion in the 2015 financial year and expect to invest US$13 billion in the 2016 financial year," said BHP Billiton CEO Andrew Mackenzie.