BHP says committed to $20 bn Australian port project
BHP Billiton, the world’s largest miner, said it was still committed to a $20bn (£13bn) expansion of the harbour at one of Australia’s biggest ports, Port Hedland, after it signalled earlier in the week it would delay the investment.
“The outer harbour continues to be an important part of our long-term strategy,” BHP’s head of iron ore, Jimmy Wilson, said today.
The miner said on Wednesday it was shelving at least one of three major projects, the $20bn Olympic Dam copper expansion, and putting all approvals on hold as it battles costs, slumping prices and an uncertain outlook.
It left open the question of whether it would press ahead with its two other mega investments, including building the outer harbour at Port Hedland.
Chief executive Marius Kloppers said then that BHP would focus on squeezing as much as it could out of the existing inner harbour port, where efficiencies could mean spare capacity in years to come, before pushing on with a new harbour.
But the company sought today to confirm its commitment to a so-called dual harbour strategy, announcing it had been given the right to develop two additional berths in the inner harbour, part of its push to stretch capacity.
“Development of the outer harbour remains attractive,” Wilson said, but adding that development would require costly construction including dredging a shipping channel and a four-kilometre jetty.
The right to develop the berths combined with efforts to ease congestion in the inner harbour would meanwhile allow the company to boost port capacity at a lower cost, Wilson added.