Massive iron ore expansion over: BHP

BHP CEO Andrew Mackenzie is not concerned about record low prices for iron ore, but he admits that the time for massive expansion has ended.

Speaking at the company’s annual general meeting, Mackenzie said that $70 a tonne for the commodity still represented a “very decent business”, but that BHP had eased back on further iron ore expansions three years ago.

“Our company has been very clear that the time for massive ­expansions of iron ore is over and we have shifted our investment into the energy sector, predominantly copper and petroleum, and we started doing that three years ago.

“We have been incredibly successful with productivity in our iron ore business and that means we can produce a lot more than we originally thought we would be able to do, both from long-­established assets and stuff we have subsequently invested in, and that is something we will continue with,” he said.