BHP Billiton to Forge Ahead with Expansions Despite Low Commodity Prices
May 10 2016 - 8:37AM
Dow Jones News
By Alex MacDonald
LONDON--Mining giant BHP Billiton Ltd (BHP) said Tuesday it will
forge ahead with investments to boost production capacity,
particularly in copper and oil, despite the protracted rout in
commodity prices.
The world's largest diversified miner by market value said it
aims to added over 1 million metric tons of copper equivalent
production capacity at a cost of less than $1.5 billion without
specifying a time frame, marking a 10% expansion on its current
production capacity. It also said it plans to extract $3.6 billion
in productivity gains from the business by the end of its financial
year ending June 30, 2017.
"We are not waiting for prices to recover," said BHP's Chief
Executive Andrew Mackenzie in a prepared Miami conference speech.
"We have everything we need in our portfolio right now to
significantly increase the value of the company," he said.
The company also plans to make an investment decision on its Mad
Dog 2 and Spence oil and gas projects within 18 months.
-Write to Alex MacDonald at alex.macdonald@wsj.com
(END) Dow Jones Newswires
May 10, 2016 08:22 ET (12:22 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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