(Repeats item from late Thursday, no change to text)
By Clara Ferreira-Marques
LONDON Oct 25 (Reuters) – BHP Billiton ,
the world’s largest miner, called on governments on Thursday to
support the industry’s efforts to slash costs in the face of
cooler demand, asking them to rein in demands on royalties,
taxes and regulation.
Miners, their profits crunched by increased costs and softer
prices, have in recent months been scaling back expansions and
spending, particularly in high-cost locations like Australia,
raising concerns that the decade-long mining boom is over.
BHP has been flagging for several months that demand growth
in China for steel making materials would slow over the next few
years. It now sees China’s economy growing at a slower 7-8
percent this year and around that level over the next 10 years.
“The reality is that we cannot do this heavy lifting on
competitiveness alone,” Chief Executive Marius Kloppers told
shareholders at the group’s annual general meeting in London,
referring to job cuts, spending restraint and a re-evaluation of
its portfolio that in August prompted BHP to shelve two
Australian expansion plans worth at least $40 billion.
BHP blamed soaring development costs, a high Australian
dollar and falling commodity prices for pulling the projects.
But last month Australia’s state of Queensland raised taxes
on coal miners aimed at pulling in an additional $1.6 billion
($1.7 billion) for the state budget over four years, which BHP
said would affect its future investment decisions.
“We accept that it is our role to carry the bulk of this
task (of cutting costs) … Governments must also play their
part in ensuring that those elements of the cost environment
they control provide a competitive framework within which future
investment is encouraged,” Kloppers said.
Continued…
