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BHP chief Mackenzie outlines plans to unlock value across asset portfolio

BHP Billiton Group is looking at incremental and large-scale growth options in a bid to add up to US$31 billion of value, CEO Andrew Mackenzie said in a May 15 presentation.

The diversified miner outlined about US$4 billion of low-cost latent capacity options across its operations, including de­bottlenecking, expansion and reprocessing material, which can result in an additional US$16 billion of unrisked net present value.

Additionally, the larger-scale future growth options could add about US$15 billion in value, including the Olympic Dam copper mine in South Australia, the Wards Well coal mine in Queensland, the Resolution copper project in Arizona, the Jansen potash project in Saskatchewan, the Scarborough gasfield off Western Australia, and the Atlantis offshore oilfield.

Mackenzie noted that the company is targeting US$2 billion of productivity gains by the end of fiscal 2019.

Mackenzie said shareholders can expect more returns in the future on the back of strong commodity prices and the company cutting the net debt to within its target range of US$10 billion to US$15 billion.

Meanwhile, BHP is looking to close the sale of its U.S. shale oil assets by the end of the year, which is anticipated to bring in over US$10 billion for the company.