The largest mining company in the world is preparing to reduce demand for minerals

BHP Billiton Ltd. (BHP) is the world's largest mining company, announced the need to reduce expenses in connection with a decrease in demand for minerals over the next five years.

Speaking last night at a press conference in Melbourne, recently appointed to the post of executive director of BHP, Mr. Andrew Mackenzie said that "he is determined to achieve an increase in performance in the company and this will be the main topic for the near future."

The BHP net profit for the past year fell by 58% as a result of the fall of world prices for the main raw materials. While demand in China is still at a high level “Over the next five years, we expect a slowdown in the growth of mineral consumption from 15 - 20% to 2-4% per year,” said Marius Kloppers, who had passed from Rio Tinto to the BHP director. “This means that the supply will exceed demand, and therefore the costs of production of products should decrease otherwise the prices will become uncompetitive.”

BHP has joined the Rio Tinto and Fnglo American by providing negative indicators in the report for the past year. The cost of the company decreased by 4 billion 300 million dollars and as of August last year amounted to $ 68 billion.

Iron ore prices, the most profitable BHP products, which recently rose by 27% can again fall to $ 110 per ton by the end of 2013. An increase in production at their own mines in China will lead to a reduction in imported demand among the largest consumer of iron ore in the world.

As Marius Kloppers said in the final word, a gap in the midst of the financial crisis of an agreement on a merger with Rio Tinto, laid the foundation for the growth of a company that lasts before this day.

Recall that in 2010, BHP and Rio Tinto terminated the agreement on the creation of a joint venture for iron ore worth $ 116 billion, abandoning mutual penalty compensation in the amount of $ 250 million.