Australian miner BHP Billiton has said that it expects the coal market to be "comfortably supplied" in the near term, with Australian quality hard coking coals expected to remain among the most highly valued. According to BHP Billiton, the US will continue to be a swing producer, while China will be the source of swing demand.
In its coal overview presentation, BHP Billiton indicated that its capital expenditure for coal operations will peak in the financial year 2013-14 and start to decline next year. BHP Billiton also stated that there are no new major projects are being considered.
BHP Billiton targets a substantial reduction in costs through reduction in contractor usage, reduction in exploration and study costs and the closure of high cost operations. The company said that the simplification of its portfolio remains a priority and it will pursue asset divestment opportunities.
