BHP Billiton slows iron ore growth, breaking ranks with Rio Tinto
Summary
BHP Billiton has said publicly that it was slowing down its iron ore expansion. This was an unexpected move from one of the largest iron ore miners in the world.
BHP has also decided to put a halt on an upgrade at Port Hedland. BHP claim that the decision to abandon the upgrade shows a responsible approach of consistently making commercial decisions in the best interests of their shareholders. The Federal Treasurer, who has criticised the mining companies in the past, welcomed the change.
Due to the iron ore prices falling so steeply, smaller mining companies are struggling with suggestions of job losses to come. BHP have tried to defend its previous tactics of driving the price down by saying “we want to emphasise that we are the lowest cost producer” 131 words
Accounting Theory …show more content…
This theory can be broken up into two main branches, the ethical (moral) branch and the managerial branch. The ethical branch features equal emphasis on fulfilling the expectations of all groups of stakeholders irrespective of their power. On the other hand, the managerial branch emphasises that company management is expected to meet the expectations of powerful stake holder groups. Such power may result from the control of limited resources, such as finance and labour, access to media or ability to take legislative action against the company or the ability to influence the goods and services consumed by the company (Deegan, 2006). 120 words
Analysis (Use references to support your argument. 350
Summary
BHP Billiton has said publicly that it was slowing down its iron ore expansion. This was an unexpected move from one of the largest iron ore miners in the world.
BHP has also decided to put a halt on an upgrade at Port Hedland. BHP claim that the decision to abandon the upgrade shows a responsible approach of consistently making commercial decisions in the best interests of their shareholders. The Federal Treasurer, who has criticised the mining companies in the past, welcomed the change.
Due to the iron ore prices falling so steeply, smaller mining companies are struggling with suggestions of job losses to come. BHP have tried to defend its previous tactics of driving the price down by saying “we want to emphasise that we are the lowest cost producer” 131 words
Accounting Theory …show more content…
This theory can be broken up into two main branches, the ethical (moral) branch and the managerial branch. The ethical branch features equal emphasis on fulfilling the expectations of all groups of stakeholders irrespective of their power. On the other hand, the managerial branch emphasises that company management is expected to meet the expectations of powerful stake holder groups. Such power may result from the control of limited resources, such as finance and labour, access to media or ability to take legislative action against the company or the ability to influence the goods and services consumed by the company (Deegan, 2006). 120 words
Analysis (Use references to support your argument. 350