BHP Billiton said in a presentation that strong steel production outlook continues to underpin iron ore demand. The iron ore cost curve is expected to flatten over the medium to long term as the major, low cost producers expand supply.
The company also indicated that it will prioritise the highest returning growth options. Debottlenecking the supply chain is expected to deliver capital efficient growth incapacity to approximately 260 mtpa to 270 mtpa.
The company noted that new Jimblebar mine will ramp up to 35 mtpa and take total mine capacity to 220 mtpa.
The firm stated that its productivity drive is already yielding strong results.
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