[Ferro-Alloys.com] It is reported that mining contractors and suppliers are set to come under even more pressure after BHP Billiton iron ore and coal boss Marcus Randolph hinted at intensified efforts to bring down the miner's Pilbara costs by squeezing the margins of its major suppliers.

It came as BHP also dropped its aspirational target of producing 450 million tonnes of iron ore in the Pilbara. Instead, BHP is discussing a target of more than 300 million tonne per annum, effectively giving up on more than USD 15 billion in annual sales revenue based on current prices.