Archive for the ‘BHP Billiton’ Category

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BHP Billiton contemplating sale of its Yeelirrie uranium project

February 26, 2012

BHP tipped to sell $9.3b worth of assets SMH February 9, 2012 BHP Billiton may consider selling about $US10 billion ($9.3 billion) of aluminum, nickel and coal mines and smelters as it trims its portfolio, Deutsche Bank says….

BHP could also sell its Yeelirrie uranium project in Australia and some petroleum assets, Citigroup said today in a report.
http://www.smh.com.au/business/bhp-tipped-to-sell-93b-worth-of-assets-20120209-1rnn0.html#ixzz1lucfhUlg

FMG pegs swathes of new tenements in major SA copper, gold and uranium districts by: Nick Evans  PerthNow,  February 07, 2012 FORTESCUE Metals Group has given the clearest sign yet it intends to diversify out of the iron ore and steel supply chain, pegging swathes of new tenements in South Australia’s major copper, gold and uranium districts.

The WA iron ore giant last year applied for 10 exploration licences covering about 4600sq/km of ground, mostly in the Woomera protected area in central South Australia. In its tenement applications, FMG said it was looking for copper, gold
and uranium – a significant departure from its current iron ore business.

According SA Government records, the bulk of FMG’s new tenements sit between OZ Minerals’ Prominent Hill copper-gold mine and BHP Billiton’s massive Olympic Dam project, slated to eventually become one of the biggest copper, gold and uranium mines in the world. …. http://www.perthnow.com.au/business/fmg-pegs-swathes-of-new-tenements-in-major-sa-copper-gold-and-uranium-districts/story-e6frg2qc-1226265102556

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BHP Billiton spending up big to try to pre-empt decision on Olympic Dam big new uranium mine

January 29, 2012

$1.3 billion is  a lot of money to spend on a project that might never come to fruition.  It’s a common tactic, but one that could come unstuck.  But then, I’ve always suspected that Marius Kloppers, Dean Dalla Valle, like many bigwigs might feel that they have plenty of BHP money to splash around –  perhaps an old-fashioned case of more money than sense.

The international news is not encouraging for the uranium industry – though I note that Australia’s mainstream media just ignores facts like  -  the expensive mess of nuclear transport in France and Germany, – the anti nuclear political strength gathering in France,  - the  huge anti nuclear movement and other nuclear hindrances in India, -and the ever downward price of uranium. - Christina Macpherson

South Australia Parliament approves BHP Billiton Olympic Dam expansion, by:Sarah Martin, Adelaide Now, :The Advertiser, November 30, 2011, BHP Billiton will start spending $1.2 billion on equipment for the Olympic Dam expansion in coming weeks after winning final approvals from Parliament for the deal to proceed.

The head of the company’s uranium operations, Dean Dalla Valle, said the approval paved the way for the $30 billion mine to be SouthAustralia’s economic driver for the next 40 years, but gave no guarantees BHP Billiton’s board would approve the project in 2012.

The indenture approval allows $525 million of the company’s pre-approved funding to be spent in South Australia over the next six months as the company begins purchasing long-lead-time items, such as trucks, and starts site works at Roxby Downs.

Despite resistance from the Greens and more than 30 hours of parliamentary debate, amendments to the Roxby Downs Indenture Act passed with bipartisan support yesterday afternoon…. State Greens leader Mark Parnell said the passage of the bill was a ”dark day” for South Australia, accusing the Government of trashing state laws to approve the mine…. The state Greens voted against the legislation, with Mr Parnell saying the Government had voted to turn South Australia into the world’s quarry.

“Future generations are going to be disgusted with us for giving their resources away for a pittance and leaving them to deal with … the world’s largest radioactive waste dump,” he said.
http://www.adelaidenow.com.au/news/south-australia/south-australia-parliament-approves-bhp-billiton-olympic-dam-expansion/story-e6frea83-1226209097762

Posted in BHP Billiton, economics, Olympic Dam | Leave a Comment »

South Australian Parliament makes BHP Billiton above the law, with Roxby Downs Indenture Act

January 2, 2012

29/11/2011 The Roxby Downs Indenture Bill today passed the South Australian Upper House. It has now passed both houses of Parliament, enshrining in law an agreement that over-rides some 21 South Australian laws, including state legislation covering radiation protection.

“Since the negotiation of the Indenture Agreement, it has been clear that the parliamentary process would simply be a rubber stamp. For example, in the Parliamentary Select Committee hearing, the opposition had the chance to question BHP for an hour, and the nature of their investigations were along the lines of concerns for the caravans that may be inconvenienced if a road was closed, never mind the tailings dams that are designed to leak,” said Nectaria Calan from Friends of the Earth Adelaide.

“Neither Labor not Liberal have shown any inclination to critically scrutinise the implications of the project, with the government bending over backwards to accommodate the mining giant. BHP wanted to recognise a historical version of the Aboriginal Heritage Act  that was repealed over 20 years ago – they got it. They wanted a mining lease that spans 70 years, despite the fact that their Environmental Impact Statement only covers 40 years – they got it. They wanted the right to be granted the expanded mining lease, covering nearly 50, 000 ha as freehold, free of charge – they got it. They wanted royalties capped for 45 years – they got it,” said Ms. Calan.

The scope of the Indenture Agreement extends far beyond the 40 years covered in the Environmental Impact Statement.

“It’s a strange state of affairs to have an Environmental Impact Statement that only covers 40 years, a mining lease granted for 70 years, and an indenture agreement that creates the right for future mining leases that will not expire until the last of the extended mining leases have expired. The intention appears to be to avoid any further Parliamentary scrutiny at all cost,” continued Ms. Calan.

Posted in BHP Billiton, legal, politics, Roxby Downs | Leave a Comment »

BHP’s Mariius Kloppers devious on uranium mining and Olympic Dam

November 28, 2011

Further delays to force BHP’s hand, BY:MATT CHAMBERS, The Australian November 18, 2011, BHP Billiton chief executive Marius Kloppers has warned that further regulatory delays on the $20 billion-plus Olympic Dam copper, gold and uranium expansion could mean the company looks at other options for its huge cashflows.

Speaking after the company’s annual general meeting in Melbourne yesterday, Mr Kloppers tempered chairman Jac Nasser’s enthusiasm for the project by saying things needed to move quickly.

“In our base-case plan, we’ve got a preferred date for Olympic Dam . . and it’s probably fair to say we’re a little later than we’d like to be,” Mr Kloppers said. ”If something gets delayed, then inevitably, probably what the
management will do, it will present the board with other options. I think that’s important.”

The comments were made after Mr Nasser said $US1.2bn of pre-commitment spending already approved by the board indicated how keen the boardwas to go ahead with Olympic Dam….

Mr Kloppers strengthened previous indications BHP was not looking at producing more uranium from Olympic Dam until well into the expansion’s production life. “The first two phases of Olympic Dam are really copper only and gold only type of things,” he said. “In due course we need to think about whether we extract more uranium, but I
see that as a separate decision, separate kit, separate capital decision, separate returns.”http://www.theaustralian.com.au/business/companies/further-delays-to-force-bhps-hand/story-fn91v9q3-1226198302416

Posted in BHP Billiton, economics, Olympic Dam | Leave a Comment »

BHP Billiton’s AGM reveals uncertainties, and opposition to Olympic Dam expansion

November 28, 2011

Road ahead looks uncertain for BHP, Canberra Times, BY GREG ROBERTS,18 Nov, 2011   ”……Chief executive Marius Kloppers said yesterday businesses were cutting back on inventory and taking fewer risks as liquidity and trade financing dried up.

  The shareholders’ meeting was dominated by a question and answer session lasting more than three hours, with speakers – including indigenous people who had travelled from central Australia – angrily accusing the company of destroying the environment through uranium and coal mining. The planned Olympic Dam mine expansion would make it arguably the biggest mine in the world.

Posted in BHP Billiton, economics, Olympic Dam | Leave a Comment »

BHP shareholders demand answers on environmental dangers of planned expansion of Olympic Dam uranium mine

November 28, 2011

BHP Billiton AGM asked about mining radiation risk , ABC News, 17 Nov 11 The environmental credentials of the planned Olympic Dam mine expansion in outback South Australia have been questioned by some shareholders at BHP Billiton’s annual general meeting in Melbourne.

Dr Jenny Grounds from the Medical Association for the Prevention of War has questioned the BHP Billiton board about monitoring radiation exposure levels for Olympic Dam workers. She has also raised the issue of disposal of radioactive tailings by the company “with its open cut mine and the surface tailings piles and the potential for dispersion by dust storms and groundwater retention.”….

Water demands The board also was asked about water demands for the proposed expansion. A desalination plant will be built on upper Spencer Gulf near Whyalla to supply water for the huge mining expansion. Anne Kennedy from the Great Artesian Basin Protection Group says it will produce a surplus of 80 million litres of water daily.

She asked if it would replace water now being drawn from the basin. ”To allocate half of that surplus would enable [the company] to return that same quantity of water to the Great Artesian Basin,” she told the meeting…. http://www.abc.net.au/news/2011-11-17/bhp-billiton-agm-environment-olympic-dam/3677110?section=sa

Posted in BHP Billiton, environment, Olympic Dam | Leave a Comment »

Multinational mining corporations will be the big winners if Australia sells uranium to India

November 28, 2011

Gillard’s uranium backflip ‘to appease big miners’, WA Today, 16 Nov 11, Prime Minister Julia Gillard’s decision to push for uranium exportation to India may be the product of a deal struck with the big miners over the MRRT, Fortescue Metals Group chief executive Neville Power speculated yesterday.

“It’s no coincidence I guess that BHP will be the largest beneficiary of exporting uranium so maybe the deal from the MRRT continues and what we’re seeing is just payback for the support of the MRRT,” Mr Power said. Ms Gillard yesterday revealed she would lobby the Australian Labor Party to change its stance on exportation of uranium to India, a country who is not a signatory to the Nuclear Non-Proliferation Treaty.

Mr Power said BHP Billiton’s Olympic Dam copper and uranium mine in South Australia stood to gain the most if the growing Indian market was opened up. ”It is remarkable that Xstrata, BHP and Rio Tinto have not said a thing about the MRRT….. The WA Labor Party has said it will maintain its blanket ban on uranium mining.…

http://www.watoday.com.au/business/gillards-uranium-backflip-to-appease-big-miners-20111116-1nhze.html#ixzz1durZFCcq

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Olympic Dam agreement all in BHP’s favour, not South Australia’s

November 28, 2011

Opposition industry spokesman Martin Hamilton-Smith joined the criticism of the deal struck with BHP Billiton.  Mr Hamilton-Smith said, “Every word of the agreement favours BHP, not South Australians.”

Greens turn new Premier Jay Weatherill blue, The Advertiser, Sarah Martin , November 10, 2011   ”……Mr Parnell agreed that the Greens did not support any expansion of uranium mining in Australia, and argued the mine could be viable without uranium exploration.

“We don’t shy away from the fact that we don’t think we should be playing any part in the nuclear cycle  … but the Olympic Dam mine is overwhelmingly a copper mine.” Mr Parnell said his party was not satisfied with the answers previously provided by the Government, and he would proceed with his amendments.

“I dispute that the questions have been answered and I will ask as many questions as are necessary and will move as many amendments as we think are necessary, and once we have done that we will stop.”

The stoush between the Government and the Greens comes as Opposition industry spokesman Martin Hamilton-Smith joined the criticism of the deal struck with BHP Billiton. (more…)

Posted in BHP Billiton, Olympic Dam, politics | Leave a Comment »

Australian Greens have serious questions on Olympic Dam uranium mine exxpansion

November 28, 2011

Greens put forward 100 amendments to gridlock mine’s $525 million, by:Sarah Martin, The Advertiser,   November 09, 2011  Greens MLC Mark Parnell said his minority party was “not going to be cut short and stopped from asking the questions that need to be asked”, …. BHP says the revised Indenture Act needs to pass Parliament before the end of the year to trigger spending on preparatory work for the mine…. the Bill’s passage could be delayed until Parliament resumes in February next year…..

WHAT THE GREENS WANT TO KNOW

  • 1. ROYALITIES

    Why did the Government lock in a royalty regime for 45 years, and why is it based exclusively on old-style production-based royalties, rather than one that captures a fair share of mining profits?

    2. ECONOMIC RETURN

    How good an economic deal did SA receive when BHP CEO Marius Kloppers is claiming to his shareholders that the Olympic Dam Expansion will be low cost and highly profitable?

    3. PROCESSING IN SA RATHER THAN CHINA

    How many South Australian jobs will be lost by not requiring BHP to process our ore here in South Australia rather than exporting it to China?

    4. EXEMPTION FROM SA LAWS

    Why is BHP exempt from over 20 South Australian laws that every other mining company in SA has to comply with?

    5. NO URANIUM OPTION

    Why wasnt a No Uranium Roxby Expansion considered when we know it is not only technically feasible, it would also mean less water and energy use and more jobs as the processing would be done here in SA, rather than in China?

    6. GREAT ARTESIAN BASIN

    Why isn’t there a plan to wean BHP off using 42ML/day of ancient water from the Great Artesian Basin, when they plan double that volume in excess capacity (80ML/day) from their desalination plant?

    7. DESALINATION PLANT & CUTTLEFISH RISK

    Why is the Government prepared to risk the breeding grounds of the Giant Australian Cuttlefish by not requiring the company to build in a different location?

    8. RADIOACTIVE LEAKAGE FROM TAILINGS DAM

    How can the Government claim that they have met their public commitment for the expansion to meet worlds best environmental practice when only 4 per cent of the tailings dams will be lined and the dams are designed to leak up to 8 million litres of toxic radioactive waste liquid/day?

    9. RESPONSIBILITY POST MINE CLOSURE

    Who will ultimately be responsible to manage the open pit, tailings dams and rock waste pile for the 10,000 years after the operations cease that the radioactive risk remains: the company or SA taxpayers, and how much will that management cost?

    10. GREENHOUSE POLLUTION & RENEWABLE ENERGY

    Why isn’t the company committing to any investment in cleaner energy to meet their whopping 650 MW electricity demand beyond the 57MW commitment for powering the desal plant (less than 10 per cent of total demand) to reduce their enormous increase in the states greenhouse pollution of 12-15 per cent?

 

Posted in BHP Billiton, Olympic Dam, politics, Roxby Downs | Leave a Comment »

BHP Billiton’s huge new uranium mine – a poor deal for South Australians

November 28, 2011

Roxby Spin vs Reality as Libs Roll-over:       

1)        EPA not fully independent

2)        No guarantee of extra processing on site
Greens Leader Mark Parnell has accused the Liberals of ducking responsibility over the Roxby approval Bill, as more details emerge that undermine confidence in the deal signed between the Government and BHP Billiton.  “The Liberals claim they could have got a better deal.  Well, they still can,” said Greens Parliamentary Leader Mark Parnell.

“It is not too late for the Parliament of South Australia to insist on a much better deal for our State.  We can and should amend the legislation to ratify the Roxby expansion currently before Parliament.  “To roll over and pass the Roxby Indenture Bill unchanged will miss a once in a generation opportunity to get this right,” he said.

The call comes as more gaps emerge in the Government’s claims over the Roxby expansion.  “The Government claims the EPA will be fully independent.  Yet with this Indenture the EPA will still be operating with one hand tied behind its back,” said Mr Parnell.

“Also the Government has talked up the potential to double processing on site at Roxby Downs to 350,000 tonnes of refined copper.  Yet this is not a condition in the approval and there is nothing to stop BHP Billiton ignoring that commitment in the future and export all the ore from the expansion and jobs to China. “And this is on top of locking in a ridiculously low royalty rate for the next 45 years.

“The closer we look, the more concerned we are at the very poor deal the State Government has signed on behalf of all South Australians,” he said.

Posted in BHP Billiton, Olympic Dam, politics, Roxby Downs | Leave a Comment »

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