Massive mine expansion a step closer

摘要

After the proposed expansion of Olympic Dam mine received approval under federal environmental law last month, BHP Billiton approved $1.2 billion in precommitment capital for the first phase of the project to develop an open pit mine in South Australia. The funding will facilitate the procurement of long lead items such as trucks and accommodation, infrastructure development and early site works. The mine has potential to increase production to 750,000t/a of refined copper plus associated products (uranium oxide, gold and silver), nearly four times its current output. The International Copper Study Group said the world copper mine production has passed 16Mt/a in 2010. In May, BHP Billiton marketing president Mike Henry said copper demand between now and 2025 is forecast to grow 1.7 times the current rate - with particularly high growth forecast in China and India. Hence, BHP Billiton seeks to expand Olympic Dam to meet some of this forecast new demand. BHP Billiton chief executive officer Marius Kloppers said: "The precommitment funding is another important milestone in the development of this world class ore-body."