BHP Billiton is planning to boost coal production in the next three years while no agreement has been reached about reducing Chinese aluminum overcapacity.
BHP Billiton Bullish on Coal
Top global miner BHP Billiton outlined plans to boost coal output by 8% over the next three years while slashing costs, and said it would only consider premium, lowest-cost assets for any acquisitions.
BHP Billiton is the world’s top exporter of coking coal used in steelmaking and also a producer of energy coal. The Australian miner is in the enviable position of running profitable coal mines at a time when more than half the world’s coal mines are losing money.
Andy Home: No Agreement on Chinese Aluminum
“China has committed to ensure that its central government policies and support do not target the net expansion of steel capacity; and to actively and appropriately wind down ‘zombie enterprises’ through a range of efforts, including restructuring and bankruptcy.”
This statement was made by U.S. Treasury Secretary Jack Lew earlier this month after high-level talks with Chinese officials in Beijing. Reuters’ Andy Home, however, writes that while there has, at least, been a meeting of the minds in regards to Chinese steel capacity, the two sides failed to reach any sort of agreement regarding aluminum other than to hold more talks, according to Lew.