BHP Billiton Welcomes Australian Environmental Go Signal on Pilbara Port Expansion, But Says Decision To Proceed Still To Take Time
BHP Billiton Ltd. continued to reiterate board approvals to pending projects will not be tackled until end of the year, even as it welcomed the latest positive development bequeathed by Australian government authorities on the planned expansion of its Port Hedland harbor in the country's Pilbara region.
"In terms of the timing for project approvals, that hasn't changed from what we've been saying -- the second half of this calendar year and still very much subject to board approval," Reuters News quoted as saying an unidentified BHP Billiton Ltd. spokeswoman.
"Today's decision doesn't change that. It just really means we've met all the regulatory processes."
"BHP Billiton Ltd. is an extremely well run and stable company," contributor Bob Johnson wrote in Seeking Alpha.
"BHP Billiton Ltd. has a history of investing through the economic cycle and this investment assures future production at very profitable levels. A one-year delay will not have a significant adverse effect on the Australian economy or BHP Billiton Ltd.'s competitive position," he added.
On Thursday, BHP Billiton Ltd.'s proposed $10-billion expansion of Port Hedland harbor has received the backing and approval of both Western Australia state and federal government. The approval stipulated 37 conditions, including orders for the company to develop a plan to protect dugongs, marine turtles and their habitat.
"The first phase of the Outer Harbour Development remains subject to BHP Billiton Ltd. Board approval," the Anglo-Australian miner said in a statement Thursday.
The expansion will involve improving existing facilities at Port Hedland as well as the construction of a new 4 kilometre-long jetty, eight new berths and other facilities.
Once fully constructed, the project will assist BHP Billiton Ltd. meet its goal of doubling iron output to as much as 440 million tonnes a year. The expansion of the outer Port Hedland harbor has been forecast to handle a capacity of 240 million tonnes a year of iron ore. This is still apart from the 220 million tonnes capacity expected from the inner harbour expansion which is already ongoing.
In May, Jacques Nasser, chairman of BHP Billiton Ltd., said it is rethinking the $80 billion it had committed for new mining projects by 2015, stressing much of the amount will not be expended and would rather be kept inside the cash safe momentarily.