Marius Kloppers, BHP Billiton Chief Executive. Marius Kloppers, BHP Billiton Chief Executive.
Global resources giant BHP Billiton (BIL) approved 11 major projects with a total investment value of US$12.9 billion (BHP Billiton share) during the 2011 financial year.
Releasing its exploration and development report on Wednesday, the group said the progression of these projects into execution forms a meaningful component of the company's anticipated organic growth program that is expected to exceed $80 billion over the five years to the end of the 2015 financial year.
Importantly, three major projects delivered first production in the 12 month period, it said.
The 11 approved projects spanned the major ferrous, non-ferrous and energy product groups and included: Macedon (natural gas); WAIO Jimblebar Mine Expansion, WAIO Port Hedland Inner Harbour Expansion, WAIO Port Blending and Rail Yard Facilities and the Samarco Fourth Pellet Plant (all iron ore); Queensland Coal Daunia mine development, Queensland Coal Broadmeadow Life Extension and Queensland Coal Hay Point Stage Three Expansion (all metallurgical coal); Escondida Ore Access (copper); Hunter Valley Energy Coal (HVEC) RX1 Project; and the Ekati Misery Open Pit Project (diamonds).
The three completed projects were the South Africa Coal Douglas-Middelburg Optimisation Project, the HVEC MAC20 Project (both energy coal) and Angostura Gas Phase II (natural gas).
Angostura Gas Phase II was completed in the recent quarter and delivered first gas on schedule and below budget.
Following the progression of the Jansen Potash Project into feasibility during the March 2011 quarter, BHP Billiton announced an additional $488 million pre-commitment to support development of the project in Saskatchewan, Canada.
BHP Billiton also announced a 129% increase in the Mineral Resource surrounding the Escondida mining complex, comprising a 40% increase at Escondida and initial reporting of Mineral Resources for the Pampa Escondida and Pinta Verde prospects. This significant increase follows an extensive four year, $381m (100% basis) brownfield exploration program, and entrenches Escondida's position as the world's leading copper mine for decades to come, BHP said.
In addition, BHP's Antamina JV announced an increase to its estimated Ore Reserves and Mineral Resources during the second half of the 2011 financial year. At 30 June 2011, Mineral Resources have increased 32%.
The group also noted that greenfield exploration continued on copper targets in South America, Mongolia and Zambia; nickel and copper targets in Australia and diamond targets in Canada. Exploration for iron ore, potash, uranium and manganese was undertaken in a number of regions including Australia, Asia, Africa and the Americas.
For the 2011 financial year, BHP Billiton spent $683 million on minerals exploration, of which $577 million was expensed. Petroleum exploration expenditure for the 2011 financial year was $557 million, of which $404 million was expensed, it said. - I-Net Bridge