...Competitive Cost Position: Most of BHP Billiton Limited/Plc's (BHP) mines are strongly positioned in the first and second quartile of their respective global cost curves, according to CRU's cost model. BHP's iron ore mines in Western Australia are among the lowest-cost mines, with most of them having business costs of about USD30/t. Most of BHP's copper production comes from Escondida, which is well positioned in the second quartile of the cost curve, although CRU expects costs to increase in line with the declining grades. BHP's other copper mines (Spence and Antamina) are low-cost mines and sit on the first quartile on the copper cost curve. Negative Outlook: The Negative Outlook reflects the emergence of several factors that, if realised, could result in a lower rating. In addition to a potentially weaker operating profile if the US shale assets are sold (weaker growth profile, reduced commodity diversification), Fitch Ratings is concerned that the presence of an activist shareholder...
