Author: Paul Ploumis
24 Oct 2014 Last updated at 05:40:04 GMT
LONDON (Scrap Monster): The Chief Executive of the company spoke up right after the annual general meeting of the company which was held in London. He further stated that, the last time board of the company approved any kind of major project was in the year 2011.
He continued his speech saying that, the iron ore production now supplied by the company are the effects of projects which were sanctioned before 2011. He also added that, even so when fundemwent6ally speaking the wide increase in the production and supply via the company is due to the productivity initiative took from the company.
He stated that, in the beginning of the year 2011, company traced its concentration back to petroleum industry as well as copper industry. Beginning of this month, the Premier of Western Australia, stated that BHP and Rio are trying to control the global price of iron ore. The premier also stated that, the most humane and logical reaction towards the declining price of a commodity would be to cut down its production as well as its supply.
The premier also added that, the main agenda of BHPP and Rio are to destroy the economy of Western Australia, to destroy the small scale companies and also the people they employ. But the CEO of BHP Billiton stated that the comments made by the premier are completely wrong and also irrelevant.
Mackenzie stated that, the company at the present owns an infrastructure, which is capable of producing huge amount of the commodity at very low prices, so the company is consuming the maximum they can from their infrastructure, in doing so they are also benefitting their shareholders. He also stated that, not mining out the iron ore hoping that the price would rise tomorrow, is an act of stupidity. He added that, a low cost producer has the right to produce at the very highest margin, according to the rules in a free market.