BHP believes that the proposed demerger will enable bring a step-change improvement in performance while retaining the benefits of scale and diversification. The organizational design will be streamlined to cater to core portfolio with simple management structure, reduced duplication and aggregate functional support, and increased use of shared services centers for functional support teams. The Company (with solid A credit rating) aims to target sustainable, productivity-led gains of at least US$4.0 billion by the end of FY17 (a minimum US$2.6 billion per annum reduction in cash costs) within the core portfolio. BHP’s community investment totaled US$242 million in FY14 and the Company paid gross taxes and royalties of US$9.9 billion in FY14. With regards to the creation of a new high-quality global metals and mining company, there will be 11 operated assets primarily in Australia and Southern Africa and a joint venture interest in Brazil. The New Company will be called South32, as of updates of December 2014. The demerger remains on track to be completed in the first half of the 2015 calendar year. The new Company’s head office will be in Perth, Australia, with a regional head office and global shared services centre located in Johannesburg, South Africa
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