The world's largest mining company BHP Billiton on 20, 2013 has appointed of a new Chief Executive Officer Andrew McKinsey, the task is to deal with the future iron ore bull market peaked and to find new profit growth point for the company. The 56-year-old Scot Andrew McKinsey said it would not significantly change the current strategy of the company. The outgoing CEO Marius Claudius Perth, BHP Billiton can not continue to rely on high-priced iron ore, iron ore prices is not sustainable.
From July 2012 to December, the first half of the 2012-2013 fiscal year, BHP Billiton profits year-on-year decrease of 58%, down to US$ 4.24 billion from US$ 9.94 billion in the same period of the previous year.
Analysts here believe that the appointment of McKinsey BHP Billiton is necessary to adjust its development direction. However, the environment has changed now. BHP Billiton to cut the cost of US$ 944 million in the first half of this fiscal year, and throughout the year less branch target set at US$ 1.9 billion. BHP Billiton paid $ 77 million for the Australian Government mineral resource tax in the first half of this fiscal year. Analysts also believe that China is shifted from infrastructure investment to energy consumption, the price of copper, petroleum, natural gas are much attractive than iron ore, coking coal prices.