BHP Billiton delays output boost as iron ore prices fall

Sydney

BHP Billiton said on Wednesday it would delay an expansion of its iron ore output to 290 million tonnes a year, becoming the first big miner to slow a planned production increase amid a plunge in prices.

The world's third-largest iron ore miner said that it was deferring a project to boost the handling capacity at its Port Hedland iron ore port, delaying a planned ramp up in production and cutting costs.

While the delay would affect only around 20 million tonnes of iron ore, a tiny amount compared with seaborne trade of around 1.3 billion tonnes, analysts said that it was significant given BHP's position as a leading producer. "It is probably more a symbolic posturing position by BHP, but it also likely signals the bottom of the iron ore market, given this action is being taken b…