[miningmx.com] — BHP Billiton said it has approved $9.5bn of capital investments to expand Australian iron ore and coal mining projects, in the first details the global miner has given of a planned $80bn in investments over five years.
The world’s biggest miner has decided to expand its own operations and infrastructure rather than chase ambitious takeovers, after three failed takeover bids, as it scrambles to meet rising demand from Asia.
The top global miner said it would invest $6.6bn in a total investment of $7.4bn to continue production growth in the company’s western Australian iron ore operations.
Investment will include the development of the Jimblebar mine, rail links and additional berths and ship loaders at its Port Hedland site.
BHP said it had also approved three key metallurgical coal projects at its Bowen Basin site in Queensland.
BHP will put in $2.5bn of the total $5bn investment, which will see the new Daunia mine developed, its Broadmeadow mine’s life extended by 21 years and the stage three expansion of its Hay Point coal terminal.
In a third statement, the company said it had approved a $400m investment to expand Hunter Valley Energy Coal in New South Wales with a view to increasing production.
The three announcements are the first in the company’s planned $80bn expansion plans announced last month, as it posted a near doubling of first-half profits to $10.7bn.
BHP has ditched three major deals in the past three years, including its $39bn bid for top global fertiliser maker Potash Corp last year, mainly on regulatory concerns.
Shares in the company closed up 1.4% in London, before the company’s statements were issued.
