Diversified miner BHP expects its fourth quarter to end-June to be tough in terms of commodity demands, as the global economy reels from the effects of the Covid-19 outbreak.
The global miner on Tuesday kept its production guidance for petroleum, iron ore and metallurgical coal for its 2020 year, but warned the situation remained “fluid”.
The group said it planned to scale back the planned $8bn it planned to spend on capital and exploration in 2021, but did not go into further detail.
“While demand in China has strengthened in recent weeks, we expect other major economies, including the US, Europe and India, to contract sharply in the June 2020 quarter,” said CEO Mike Henry.
“The situation remains fluid, however, with our strong financial position and low-cost operations, our business is resilient, with capacity to generate solid cash flow through this period and emerge well placed as the global economy recovers,” the statement read.
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