Australian news, and some related international items

BHP’s CEO came several Kloppers, especially over Olympic Dam uranium mine

Is Olympic Dam strike 3 for BHP’s CEO?   9 News,  by Mike King, The Motley Fool, August 24, 2012 BHP Billiton Limited (ASX: BHP) has today announced that it would not be ready to proceed with the much-hyped US$20 billion expansion of Olympic Dam in South Australia by the previously agreed deadline of 15 December 2012.

Higher capital costs and subdued commodity prices led to the decision to not proceed as originally planned.

The company instead will investigate an alternative, less capital-intensive design of the open-pit expansion to substantially
improve the economics of the project. BHP sets an internal rate of return hurdle of 15% on its projects and it appears the Olympic Dam expansion has failed to make the grade.

Olympic Dam is the world’s largest uranium ore body…   The Foolish bottom line

While the cancellation of the Olympic Dam expansion is likely good news for BHP and its cash flow, it may not be good news for the company’s CEO Marius Kloppers, as it could be seen as another failure….


August 25, 2012 - Posted by | General News

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