Antinuclear

Australian news, and some related international items

The push for monster Olympic Dam uranium mine – a monster mistake for Marius Kloppers?

 a go-ahead decision on the $US30bn expansion will be delayed for at least two years.

Kloppers made what can now be said to have been an error in talking up the ability of its monster cashflow to fund $US80bn over five years in organic projects to the end of the 2015 fiscal year. Olympic Dam was included in those organic growth projects…

The big money in horse racing waits to the last moment in case an unknown becomes known and changes the odds. A decision on Olympic Dam is much the same. ….

Olympic Dam decision will show Kloppers’ standing BY: BARRY FITZGERALD : The Australian July 31, 2012   THE number five is popping up everywhere for Marius Kloppers. He turns 50 next month, has been chief executive for five years come October, and on August 22 will get to announce an annual profit fall of $US5 billion ($4.7bn) and the need for a $US5bn or so writeoff on last year’s US shale gas push

Then there is the talk that the clock on his chief executive tenure is at five minutes to midnight, ….

Rounding out the string of fives is whether the time is right to commit $US5bn to kick-start the Olympic Dam expansion. A decision on that is due in December.

And to BHP’s way of thinking, that’s where things stand, even if hard
evidence is mounting that it has been softening up all and sundry in
the fly-over state of South Australia that a go-ahead decision on the
$US30bn expansion will be delayed for at least two years.
Last year, when Kloppers announced a record $US21.7bn annual profit
and a record operating cashflow of more than $US30bn, a go-ahead this
year for Olympic Dam was taken as certain (in June, actually).
Brandishing BHP’s immense firepower at the time, Kloppers made what
can now be said to have been an error in talking up the ability of its
monster cashflow to fund $US80bn over five years in organic projects
to the end of the 2015 fiscal year. Olympic Dam was included in those
organic growth projects…
But the sharp retreat in commodity prices since that chest-beating
means BHP is now very much into rationing capital. The
big-bang-on-many-fronts approach of last year has been replaced by the
sequencing of new projects — the new timetable for which BHP is under
pressure to spell out to investors, host communities and host
governments. That is particularly so with Olympic Dam…..
The big money in horse racing waits to the last moment in case an unknown becomes known and changes the odds. A decision on Olympic Dam is much the same. ….

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August 6, 2012 - Posted by | business, South Australia, uranium

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