nuclear-news

World’s biggest man made hole – BHP ‘s uranium mine, might not go ahead

Reuters report on mining conference in Canada  Mar 6, 2012  By Euan Rocha  TORONTO, March 6  –  The Anglo-Australia mining giant, which already operates an underground mine at the site, has yet to sign off on the budget for
the open pit…. but BHP may opt to delay taking on the heavy financial burden that could easily be in the $10 billion to $20 billion range…..

…. PDAC, the mining industry’s largest annual gathering. The convention, organized by the Prospectors and Developers Association of Canada, opened in Toronto on Sunday.

Even though Olympic Dam, located 550 km (345 miles) north of Adelaide, is one of BHP’s biggest growth prospects, the cost of
digging the massive pit may prove prohibitive.
Last month the company reported a profit decline, and it struck a cautious tone on its expectations for growth in China, one of its
biggest markets. That has led some to speculate that the miner may delay spending on capital-intensive projects such as Olympic Dam and the Jansen potash project in the Canadian province of Saskatchewan.

In late 2011, BHP finalized state approvals to begin construction work on the open-pit phase of the Olympic Dam project, but the agreement would lapse around December if BHP delays its decision on proceeding.

“We want to see a board decision before the end of the year about substantial works beginning. If not, the approvals run out and BHP know this,” said  Tom Koutsantonis, minister for mineral resources and energy for the state of South Australia.” I’m not in the business, and no government should be in the business, of allowing anyone to have massive tenements that they don’t develop …”-
A spokesman for BHP declined to comment on the remarks.
MASSIVE SCALE The sheer scale of the open-pit project is formidable. BHP will have to shovel rock for five to seven years before it reaches the Olympic Dam ore body, discovered in the mid-1970s….. http://www.reuters.com/article/2012/03/06/canada-mining-pdac-olympicdam-idUSL2E8E60E220120306

March 7, 2012 - Posted by Christina Macpherson | AUSTRALIA, business and costs, Uranium