Global mining leaders BHP Biliton has announced plans to boost its coal output by 8 percent over the next three years.
"The developing world needs steel, steel needs coking coal, and we have the strongest resource position in the seaborne market," BHP Billiton Minerals Australia president Mike Henry told reporters on Tuesday after an investor presentation.
"We have the portfolio of assets best placed to meet this future demand," he added.
The company is also looking to cut costs by $600million over the next 12 months by negotiating better deals on its equipment and parts for trucks, wash plants and workers.
"We will unlock further productivity, reduce costs and release latent capacity," the company said in slides prepared for an investor presentation." the company said in a statement.
BHP Billiton owns nine coking coal mines in Australia's Queensland state with Japanese partners Mitsubishi Corp and Mitsui & Co. It also owns the biggest energy coal mine in the Hunter Valley in Australia and a one-third stake in Cerrejon, alongside Anglo American and Glencore Plc.