Engineering and Mining Journal - Whether the market is copper, gold, nickel, iron ore, lead/zinc, PGM, diamonds or other commodities, E&MJ takes the lead in projecting trends, following development and reporting on the most efficient operating pr
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BHP OUTLOOK Further optimization of the portfolio compelled to fast track it. The decisions we make today will drive returns in the long term for that asset." BHP is in the enviable position of having more development options than human capital and financial capacity, Kloppers explained. "We have choices," Kloppers said. "If the economic returns are not there, we are not going to invest." Focusing More Attention on Fewer Things Following the approval of its organic growth projects at Escondida, BHP is currently executing 22 major projects. "We are largely committed for our capex in FY2012 and FY2013," Kloppers said. After that, he sees flexibility in FY 2014 and 2015. He explained the company would be careful to approve projects in sequences that maximize value, reduce risk and balance the consideration of the long- and short-term. Kloppers an extensive list of divestments BHP has made. "We will continue to optimize and to simplify the portfolio moving for- ward," Kloppers said. In Western Australia, BHP's decision to invest $5 billion dur- ing the GFC continues to deliver record results. The company expects capacity to reach 200 million mt/y of iron ore by 2013. At Escondida, the largest copper mine in South America, BHP will nearly double copper production by 2015. This represents strong growth in BHP's core businesses: iron ore and base metals. "We are confident in the long-term outlook for our company," Kloppers said. "The industry, however, faces a very different set of challenges and choices. Fiscal stability is a fundamental require- ment given the size and duration of the development options we are considering. The quality and diversity of our asset portfolio will continue to drive returns. A stringent project approval process will ensure that we allocate capital in a disciplined fashion." www.e-mj.com JUNE 2012 • E&MJ; 105