BHP Billiton Limited
(ASX:BHP) has flagged a fall in capex over the following financial year.
The diversified mining giant expects its capital and exploration expenditure to decline to $US9 billion from $US12.6 billion in the current financial year.
CEO Andrew Mackenzie says the reduction has been made to further improve the returns of the company’s growth portfolio.
Mr Mackenzie has also noted a decline in copper and field decline in oil will constrain industry production and support a recovery in price over the medium term.
The observations were made during a presentation at the Bank of America Merrill Lynch Global Metals, Mining & Steel Conference in Spain yesterday.
BHP Billiton reported a net profit of $5.84 billion in the first half of the 2015 financial year.
