Antinuclear

Despite government support, Olympic Dam expansion might not be economic for BHP

BHP cuts spending on major projects, Adelaide Now, Julian Swallow And Cameron England May 16, 2012 BHP Billiton has backed away from a commitment to spend $80 billion on major projects over the next five years, including the
Olympic Dam mine expansion. The miner said yesterday it would make a decision on the $25 billion Olympic Dam expansion by the end of the year but made it clear that its key assets globally would be competing for funds.

BHP had previously announced an $80 billion fund, but chairman Jac Nasser said this figure had been reconsidered.

“When (CEO Marius Kloppers) talked about that $80 billion … the environment was different,” Mr Nasser said….. BHP has already started spending $1.2 billion earmarked to kick-start the Olympic Dam expansion, which will eventually involve the company digging a 4km-long, 1km-deep, open-cut copper, gold and uranium mine in the state’s Far North.

There was a strong political element to Mr Nasser’s comments, made at
a Sydney business lunch.

The BHP chairman said Australia had become “one of the higher-cost
countries”, and he called for reform of the Fair Work Act. He said the
current framework was failing and not challenging the fall in
competitiveness…..
The mining industry has had a good record recently in influencing
Federal Government policy.

It successfully lobbied to have former prime minister Kevin Rudd’s
Resources Super Profits Tax watered down into the much less burdensome
Mineral Resources Rent Tax, which takes effect on July 1……..
BHP also lobbied to ensure changes to the diesel fuel rebate were not
included in the Federal Budget, announced earlier this month.

BHP has 22 projects worldwide, including four major mines, that are in
competition for funding.

They are a potash project in Canada, expansion of iron ore mining in
WA’s Pilbara, Queensland coal interests, along with Olympic Dam….
http://www.adelaidenow.com.au/bhp-reduces-spending-on-major-projects/story-e6frea6u-1226358211022

May 17, 2012 - Posted by Christina Macpherson | business, South Australia, uranium | South Australia