By Rhiannon Hoyle 

SYDNEY-- BHP Billiton Ltd. outlined plans to cut costs further and curb investment spending as the world's biggest miner by market value looks to simplify and strengthen its business amid falling commodity prices.

The Anglo-Australian resources group Monday said it wants to record at least another $4 billion of productivity-led gains by the middle of 2017, through paring costs and bolstering the volume of commodities it produces. BHP said it thinks it can cut the cost of running its iron-ore operations in Western Australia by 15% in the year through June, excluding freight charges and royalty payments to government. It hopes to reduce its cost of producing coal in Australia's Queensland state by 10% over the same period.

Meanwhile, BHP plans to cut its investment in projects to $13 billion in the year through June 2016, from $14.2 billion this fiscal year "with no impact on growth," Chief Executive Andrew Mackenzie said in presentation slides released to the Australian Securities Exchange.

One of the projects that will form a core part of the miner's strategy will be the development of its Olympic Dam copper-and-uranium mine in southern Australia, BHP said.

"We are evaluating a low-risk, capital-efficient underground expansion at Olympic Dam" that could increase copper output there to 450,000 metric tons a year from mid-2024, from around 185,000 tons last financial year, Chief Financial Officer Peter Beaven said in the slides.

The miner is also considering options for its Spence copper operation, including plans for an expansion that could boost production next decade, it said.

BHP separately outlined plans for a management reshuffle. Among the changes, Daniel Malchuk, head of aluminum, manganese and nickel operations that BHP plans largely to spin off next year, will become president of its copper division, succeeding Peter Beaven, who was recently named chief financial officer.

And next year, Mike Henry, president of safety, marketing and technology, will switch places with Dean Dalla Valle, president of its coal division, BHP said.

Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com

Access Investor Kit for ASX Ltd.

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=AU000000ASX7

Access Investor Kit for BHP Billiton Plc

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=GB0000566504

Access Investor Kit for BHP Billiton Plc

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=US05545E2090

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

ASX (ASX:ASX)
Historical Stock Chart
From Feb 2024 to Mar 2024 Click Here for more ASX Charts.
ASX (ASX:ASX)
Historical Stock Chart
From Mar 2023 to Mar 2024 Click Here for more ASX Charts.