BHP unveils £8.70bn limit on capex

BHP Billiton said yesterday that it expected to limit annual capital expenditure to $14bn (£8.70bn) after a planned demerger next year.

The company’s capital and exploration expenditure declined by 32 percent in 2014 to $15.2bn, chief executive Andrew Mackenzie said in a presentation to investors.

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“Our level of investment is expected to decline again in 2015 to $14.8bn and be no more than $14bn beyond the demerger,” he said.

Previously, BHP had said it was targeting annual capital expenditure to below $15bn.

BHP, the world’s biggest mining company, in August announced plans to spin off operations worth roughly $16bn to focus on its most profitable activi- ties.