BHP Billiton

BHP reports 86% drop in annual profit amid falling commodity prices

BHP reports 86% drop in annual profit amid falling commodity prices

Amid falling commodity prices, the world's biggest miner BHP Billiton has reported 86% fall in annual profit on Tuesday. The company has warned that China's slowing economy would result into more market instability.

In a statement, the Melbourne, Australia-based Company said it saw a net profit of $1.9 billion for the 12 months, down from $13.8 billion in previous year. Revenue fell 22% to $52 billion.

While responding, the mining giant has mentioned that it is looking forward to cut costs, by bringing down its target for capital spending from $9 billion to $8.5 billion in the coming financial year.

South32 debuts with $9 billion valuation

South32 debuts with $9 billion valuation

On Monday, BHP Billiton's spin-off South32 started trading with a market value of nearly $9 billion.

Australia's largest listing since 1998 houses BHP Billiton's former alumina, aluminium, manganese, nickel, silver and some coal assets.

The listing suggested that in order to convince the market that it can grow the assets that have long been neglected within BHP, South32 will need to do more.

Andrew Driscoll, an analyst with the brokerage firm CLSA, said , “Investors feel that they can be patient as they wait to learn a little more about the strategy, the assets and the potential for growth”.

BHP planning to sell non-core assets

BHP planning to sell non-core assetsMining giant, BHP might be considering several strategic options to spin off its non-core business in order to create a new firm, according to people closer to the matter.

It is believed that the company is planning to create a new $20 billion resources company with its non-core businesses. A team of company officials, being advised by Goldman Sachs are evaluating various options including demerger and individual asset sales in order to create a new firm.

BHP results, Federal Reserve comments improves miners sentiment

BHP results, Federal Reserve comments improves miners sentimentA strong result posted by mining giant BHP Billiton as well as assurances from the US Federal Reserve that the stimulus will only be withdrawn if the economy is strong enough to sustain growth, boosted confidence in the mining sector in the country.

BHP Billiton to control Pilbara mines operations form Perth centre

BHP Billiton to control Pilbara mines operations form Perth centreGlobal mining giant, BHP Billiton has opened a new ''Integrated Remote Operations Centre'' in Perth allowing staff members will be able to control several important functions at the Pilbara mine from the remote location.

A team of about 70 people at the new Integrated Remote Operations Centre will look after logistics and mining work on the company's seven Pilbara mines. The centre will be operational 24 hours a day around the year. It was inaugurated on Tuesday by Western Australian Premier Colin Barnett and BHP iron ore head Jimmy Wilson.

BHP Billiton sells stake in Pilbara mine

BHP Billiton sells stake in Pilbara mineMining sector major, BHP Billiton has said that it has sold a 15 per cent stake in the Pilbara iron ore mine in West Australian to two consortiums form Japan for about $US 1.5 billion.

Itochu will invest about $US800 million while Mitsui will spend $US700 million in shares and loans for acquiring the stake in BHP's Jimblebar mine in the Pilbara region in the state. After the transfer of stake, Itochu will hold a 8 per cent stake in the project while Mitsui will have a 7 per cent holding.

High Court asks tribunal to review Rio rail access case

High Court asks tribunal to review Rio rail access caseThe High Court has ordered the Australian Competition Tribunal to review the case relating to the Rio rail access project on more limited grounds.

The court criticized the tribunal of overreaching its powers in the matter and ordered a review of the case. The decision comes following claims by Fortescue's and others over a time of several years that they must be provided access to Rio Tinto and BHP's rail lines in the Pilbara because they were monopolies.

BHP Billiton might cut jobs after scrapped expansion plan

BHP-BillitonWorld's largest mining company by market value, BHP Billiton might transfer or lay off as many as 140 employees in South Australia following its decision to cancel plans to expand operations at its Olympic Dam copper and uranium mine in the region.

The Melbourne-based had delayed and postponed new investment plans until the middle of next year citing lower prices of commodities and higher prices of materials. The company has announced that it will cut 140 jobs at the Olympic Dam project following the decision to scrap $ 20 billion expansion plans of the copper and uranium project.

Cameco to acquire BHP’s uranium project in Australia

Cameco to acquire BHP’s uranium project in Australia BHP Billiton has said that it will sell its Yeelirrie uranium deposit that is situated in Western Australia for $ 430 million to Cameco Corp of Canada.

The sale announcement came after BHP Billiton said that it has decided to scrap the project. Chief executive Marius Kloppers has indicated that the deposits were too small in quantity for the company. WA Premier Colin Barnett had asked BHP Billiton to scrap the project because it is too small for its portfolio.

Mining boom continues despite lower prices, says Clyne

Mining boom continues despite lower prices, says ClyneNational Australia Bank boss Cameron Clyne has said that the boom in the investments in mining projects continue even as the prices of commodities have fallen in global markets.

He added that there is a significant of projects even as the price of commodities has fallen over the years. There are concerns that the rising prices will force more companies to follow BHP Billiton and cancel major projects in the country.

BHP scraps bid for Potash Corp

BHP-BillitonIn an event that took many market watchers by surprise, one of the top global miners, BHP Billiton announced its decision to scrap its $39 billion bid for Canada's Potash Corp.

It is to be mentioned here that it was expected to be the world's biggest deal this year but as the global mine major eventually decided to return cash to its investors with a $4.2 billion share buyback, it made its way to the history books.

BHP Billiton reports 11% growth in iron ore production for third quarter

BHP Billiton reports 11% growth in iron ore production for third quarterBHP Billiton Ltd, the biggest resources company in the world, released today its third quarter production report. The miner said that it had reported a growth of 11% in its iron ore production in the third quarter.

The company also said that current quarter production was impacted by weather related disruptions and project tie-in activities at Western Australia Iron Ore.

BHP in Accordance With Steelmakers

BHP-Billiton-LogoBHP, the World's biggest mining company, has agreed to bring outs its coking coal on short-term contracts with accordance to the steelmakers. The short term contracts on a differed price will entail for the customers in Europe, China, India and Japan.

The Melbourne based company expressed that it has reached to the terms of significant portion for its coking coal volumes which does not give a price. Following the footsteps the JFE Holdings Inc., Japanese steelmaker agreed upon the $200 a metric payout on a 3 moth's contractual basis.

BHP breaks the status quo, signs huge quarterly contract

BHP-BillitonAustralia-based BHP Billiton has broken the traditional method of signing annual contracts and has signed an unexpectedly high-priced quarterly one.

World's biggest coking coal exporter penned a deal with Japan's JFE Holdings to supply an unknown amount of coke at a price of $200/ton.

The price is 55 per cent higher than what the company had signed in 2008-09 and is much closer to spot rates which are close to $220/ton.

Besides this, the exporter has also signed contracts with other European, Indian and Chinese companies. The price quoted there is similar to the one done in Japan.

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