LONDON (Reuters) - BHP Billiton (L:BLT) (AX:BHP), the world's largest mining company, said on Tuesday it would cut its capital and exploration expenditure to $9 billion (6 billion pounds) in the 2016 financial year from $12.6 billion in 2015.
The Anglo-Australian mining company also said it expected to reduce iron ore unit costs at its Western Australia operations by 21 percent to $16 per tonne in the 2016 financial year, from a cost of just below $20 per tonne last month.
BHP and rival Rio Tinto (L:RIO) (AX:RIO) have embarked on a battle to become the lowest cost iron ore producer while they raise production of the steel ingredient hoping to push competitors out of the market and gain market share.
They have been helped in their cost-cutting efforts by weaker oil prices and a lower Australian dollar against the U.S. dollar.
