Wednesday, January 21, 2009

Ya think the wheels have come off the supercycle?

OK, so Guambat was early. WAY early. Way TOO early. And for that he's paid.

But not wrong.

The wheels have well and truly come off the supercycle.

Here's a few of the thousand words on the subject:

BHP to cut 6,000 jobs, take $1.6 bln charge on mine
BHP Billiton Ltd/Plc (BHP.AX) will cut 6,000 jobs and close its giant Ravensthorpe nickel mine in Australia, writing off $1.6 billion, as the global resources giant battles a collapse in commodity prices.

Until now BHP, the world's largest miner, had set itself apart by maintaining production and just last month said sales volumes were holding up despite a global downturn.

But as it became increasingly apparent there would be no quick fix to the slump in commodity prices, BHP was forced to do what it long resisted -- close mines and cut jobs.

BHP Chief Financial Officer Alex Vanselow warned on Wednesday more mines could be closed given the uncertainty in commodity markets, with the Australian metallurgical coal mines already slated to reduce output by 10-15 percent.

"The world changed a lot since October. It's been a very steep and dramatic change ... " Vanselow said.

And here's a picture worth a thousand more:


Post a Comment

Links to this post:

Create a Link

<< Home