Speaking at the Melbourne Mining Club in London yesterday, Mackenzie spoke of changing times in the mining industry.

After a decade of growth and a sustained period of buoyed commodity prices underpinned by the pace of China’s 21st century urbanisation and industrialisation, Mackenzie said the rebalancing of supply and demand had let to more sustainable prices for its customers.

“Finding $5 of savings per tonne did not seem as pressing when prices were skyrocketing,” Mackenzie said.

“But it really matters now.”

Mackenzie, who took over as chief executive from Marius Kloppers in May, made note of investor concerns that arise at a time when high prices are no longer.

“Investors are concerned that we cannot deliver returns in the absence of the past,” he said.

“And government and communities still want a larger slice of the pie.”

But in an optimistic fashion, Mackenzie moved to quell shareholder doubts, speaking of the need to be disciplined no matter the price environment.

“More balanced markets require us to get much sharper on operating and capital productivity to expand margins and increase returns, no matter where prices go,” he said.

“For us, every one cent improvement in productivity translates to a $170 million saving.”

Mackenzie’s optimism, at a time when a lot of the large cap mining companies are struggling, was also based on the supply market.

Popular opinion concerning oversupply was unwarranted, according to Mackenzie.

“Such abundance does not lead to oversupply,” he said.

“We cannot repeal the cycle so supply will oscillate around demand.

“And thankfully, with most commodities now traded on transparent markets, we can now count on clear price signals to introduce the new production required.”

At a time when the industry is facing declining grades, longer haul distances, rising strip ratios, Mackenzie called for miners to target deeper deposits.

Mackenzie used his speech to highlight the ability miners had when it came to selecting their investment destinations.

“Our industry will only invest where we are welcome, and where we can generate the most value without adverse social and environmental impact,” he said.

“The nations that will successfully attract investment are those in which governments offer political and fiscal stability, and where policymakers want to work with us to create conditions for the industry to prosper.”

Mackenzie has wasted no time in implementing changes at BHP following the company’s

58% slump in half-year profit to $US4.2 billion ($A4.4 billion).

He recently outlined plans to simplify the company’s portfolio and focus on “four pillars” – iron ore, copper, petroleum and coal.

Capital expenditure of about $22 billion this financial year would be the peak of investment for BHP, with FY14 capex expected to drop to about $18 billion and drop further to $15 billion within 2-3 years.