Antinuclear

Olympic Dam – 80% out of action for 6 months?

Olympic Dam accident threatens output  THE AUSTRALIAN Matt Chambers | October 09, 2009

BHP Billiton’s giant Olympic Dam underground mine could be running at just 20 per cent capacity for up to six months, analysts say, after a loaded iron skip plummeted to the bottom of the 800m-deep main shaft.

The mining giant yesterday remained quiet about the incident, which happened on Tuesday night, pending parallel government and company investigations that are expected to take two weeks. ……………”One of the most serious incidents that can occur in a haulage shaft would be the ore skip free-falling down the shaft,” Goldman Sachs JBWere analyst Neil Goodwill said.

Mr Goodwill said it was possible the shaft could be shut for three to six months.

Analysts said the alternative haulage shaft, known as the Whenan shaft, had only 20 per cent of Clark’s capacity.

Assuming BHP has limited ore stockpiles at the surface, this could mean up to $700m of revenue would be lost to BHP over six months, based on current spot prices. …..BHP has not had to notify the stock exchange despite a six-month shutdown representing a $US280m loss in earnings before interest and tax (EBIT), because this would only represent about 3 per cent of the mining giant’s EBIT in that period.

“This disruption has more important implications for the copper and uranium markets than anything else,” Macquarie analyst Brendan Harris said. http://www.theaustralian.news.com.au/business/story/0,28124,26183420-36418,00.html

October 9, 2009 - Posted by Christina Macpherson | business, South Australia, uranium | antinuclear, Australia, BHP, BHP Billiton, nuclear, nuclear costs, radioactive, South Australia, uranium