World’s largest miner reports multibillion losses

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The world’s largest miner BHP Billiton (NYSE:BHP) reported a dramatic loss of US$6.385 billion in the end of the fiscal year in June 30. The Oilprice.com explains that the worst results of a year became a consequence of multi-billion impairments on U.S. shale assets and a burst dam in Brazil. The previous financial year ended up for the company with the US$ 1.91-billion profit.

BHP recognized an impairment charge of US$4.9 billion against the value of its onshore U.S. assets. Analysts suppose that it reflects altered price assumptions amid high volatility and much lower prices in the gas and oil industry.

Besides the Samarco dam failure led to a US$2.2-billion net charge for the miner. The catastrophe called Brazil’s worst mining disaster killed 19 people and made billions of gallons of mining waste release into the valley.

BHP experts are rather doubtful about global growth thinking that it will “remain modest and subject to downside risks, including the uncertain economic consequences of ‘Brexit”.