Antinuclear

Olympic Dam uranium mine: future uncertain

BHP’s dam dilemma: costs rise
The Age BARRY FITZGERALD September 9, 2009
BHP Billiton’s proposed expansion of the Olympic Dam copper/uranium/gold mine in South Australia’s outback is set to become the most expensive ever, with analysts estimating an all up cost of $US15-$US20 billion ($17.4-$23.2 billion)……

In a report released today, Morgan Stanley analysts estimate the expansion cost for Olympic Dam at $US15.9 billion – the lower end of analyst expectations. BHP itself has yet to provide any guidance on the expansion cost, with a $US6 billion estimate released several years ago now hopelessly out of date………………….

BHP released a 4600-page environmental impact statement on the proposed expansion of Olympic Dam project in May. It is now in the process of responding to public comments on the statement, with a final report to be issued in the first quarter next year.

While BHP believes it will be able to secure all government approvals for the staged expansion in 2010, it has stopped short of saying that it will commit to the expansion at the same time.

A final investment decision will depend on prevailing economic conditions at the time, ……………………

To develop the open-cut, BHP will have to remove 410 million tonnes of overburden material a year for five years to get to the top of the ore body. In 40 years, it will have created a hole 4.1 kilometres long, 3.5 kilometres wide and up to a kilometre deep.

BHP does not plan to process all of the mined copper, uranium and gold ore on site. On-site processing of concentrates will be expanded to 800,000 tonnes a year but 1.6 million tonnes a year of concentrates will go to China for finishing.

BHP’s dam dilemma: costs rise

September 10, 2009 - Posted by Christina Macpherson | 1, business, South Australia, uranium | antinuclear, Australia, BHP Billiton, nuclear, nuclear costs, South Australia, uranium