[miningmx.com] – BHP Billiton would cut capital outlays by 40% in 2016 to $13bn compared to spend in its 2013 financial year and had increased annual productivity targets by 2017 to $500m, said Bloomberg News.
Citing comments by the Andrew Mackenzie, CEO of BHP Billiton, Bloomberg News said the company was cutting costs in order to maintain dividends amid tumbling iron ore and crude oil prices.
“We are able to drive productivity both in capital and in our operations at a pace that we can more than counteract the impact of price and ensure that our dividend is covered,’ Mackenzie is quoted to have said.
The dividend, BHP Billiton’s credit rating and select investments had priority over buybacks, Mackenzie added.
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