BHPB is studying a BRL 3 billion iron ore project in Brazil
2011-07-13 09:27:36 [Print]
It is reported that BHP Billiton Limited is studying a BRL 3.7 billion iron ore project in Brazil as it seeks to expand output of the steelmaking material and gain from higher prices.
The government of Minas Gerais state, citing a letter of intent signed by the Melbourne based BHP, said that the project in the southeast of the country may start in 2017 and have initial annual production capacity of 20 million metric tons of iron ore concentrate. Spokesman Mr Ruban Yogarajah confirmed the letter's contents.
BHP, the world's fifth biggest company by market value, got more than a quarter of last year's USD 24.5 billion earnings before interest, taxes, depreciation and amortization from its iron ore operations, the majority of which are in Western Australia.
CEO Mr Marius Kloppers in February committed USD 80 billion in spending on BHP's mines and oil fields by 2015. Global demand for iron ore exports rose 12% in 2010 to exceed 1 billion tonnes for the first time. Prices should remain at elevated levels of near USD 160 to USD 170 a tonne for the next three to five years.
Mr Yogarajah said from London that the letter is a non binding document providing a preliminary idea of the potential project. The proposed operation is separate to the company's Samarco iron ore venture with Vale SA, the world's biggest exporter of the raw material.
The new project includes mining sites in the municipalities of Ouro Preto and Itabirito, in Minas Gerais state, and an ore processing plant in a location the company hasn't chosen yet, according to the government statement. It would employ about 1,100 people and create a further 1,100 indirect jobs. The unit would export 80% to 90% of its output.
BHP and Vale agreed in April 2011 to spend as much as USD 3.5 billion expanding the Samarco plant to capacity of 30.5 million tonnes of iron ore pellets.
The government of Minas Gerais state, citing a letter of intent signed by the Melbourne based BHP, said that the project in the southeast of the country may start in 2017 and have initial annual production capacity of 20 million metric tons of iron ore concentrate. Spokesman Mr Ruban Yogarajah confirmed the letter's contents.
BHP, the world's fifth biggest company by market value, got more than a quarter of last year's USD 24.5 billion earnings before interest, taxes, depreciation and amortization from its iron ore operations, the majority of which are in Western Australia.
CEO Mr Marius Kloppers in February committed USD 80 billion in spending on BHP's mines and oil fields by 2015. Global demand for iron ore exports rose 12% in 2010 to exceed 1 billion tonnes for the first time. Prices should remain at elevated levels of near USD 160 to USD 170 a tonne for the next three to five years.
Mr Yogarajah said from London that the letter is a non binding document providing a preliminary idea of the potential project. The proposed operation is separate to the company's Samarco iron ore venture with Vale SA, the world's biggest exporter of the raw material.
The new project includes mining sites in the municipalities of Ouro Preto and Itabirito, in Minas Gerais state, and an ore processing plant in a location the company hasn't chosen yet, according to the government statement. It would employ about 1,100 people and create a further 1,100 indirect jobs. The unit would export 80% to 90% of its output.
BHP and Vale agreed in April 2011 to spend as much as USD 3.5 billion expanding the Samarco plant to capacity of 30.5 million tonnes of iron ore pellets.
