EbeneNews – AU – BHP Shelves $ 3 5b Expansion Plan for Olympic Dam

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Mining giant BHP put aside long-standing plans for a $ 3.5 billion expansion of its Olympic Dam mine in South Australia

Although BHP’s Olympic Dam copper, gold, silver and uranium mine posted its best performance in five years, the company said it had decided not to pursue a project to ‘brownfield asset expansion after conducting more than 400 kilometers of drilling which improved its knowledge of the deposit

BHP’s Olympic Dam copper, gold, silver and uranium mine posted best performance in five years, company said it decided not to pursue an expansion project of the brownfield site of the asset after having carried out more than 400 kilometers of drilling which improved its knowledge of the deposit

« This has posed challenges for the economy of the Brownfield Expansion Project, and we have decided that the best way to move forward at the moment is to reduce the targeted bottlenecks, to modernize the plant and modernize our infrastructure, « says BHP’s quarterly report. » We will continue to explore options for longer-term growth « 

Australia’s largest miner on Tuesday recorded a 7% increase in its production of iron ore, the country’s most valuable export, shipping 74 million tonnes of the steel ingredient from its Australian operations Western and exceeding analysts’ expectations

The Olympic Dam expansion project, which BHP estimates would cost up to US $ 2.5 billion ($ 3.5 billion), was proposed in 2017 and was expected to significantly increase copper production BHP had originally planned to take an investment decision on the project this year

Mining analysts on Tuesday described BHP’s quarterly operating performance as a « very strong start » to fiscal 2021, beating analysts’ consensus forecasts for most commodities, including iron ore, copper and oil

« BHP, which had another good quarter on the production side, has seen them operate majors on the most regular basis at the moment, in our opinion, » the Royal Bank of Canada analyst said, Tyler broda

« We continue to believe the mining sector is well positioned with a strong China continuing to support rising iron ore prices »

In all of BHP’s coal operations, M Broda said BHP continued to take a wait-and-see approach following the Chinese government’s latest coal import restrictions, which led customers to request postponement of coal shipments

Import restrictions, supposedly targeting thermal coal and steelmaking coal, coincide with a deterioration in diplomatic relations between Canberra and Beijing this year due to calls for a coronavirus investigation It is not known whether the latest bans target all foreign coal as a means of boosting the Chinese coal industry, or Australian coal in particular

Offering a boon to Australia’s major iron ore miners and the federal budget, the price of iron ore has surpassed $ 120 per tonne this year amid resilient demand from Chinese steel mills and declining production of other exporting countries, such as Brazil, which has faced disruptions related to COVID-19

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BHP, MEGT Olympic Dam, iron ore, gold

EbeneNews – AU – BHP shelves $ 3 5b expansion plan for Olympic Dam



SOURCE: https://www.w24news.com/news/ebenenews-au-bhp-shelves-3-5b-expansion-plan-for-olympic-dam/?remotepost=439485

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