Approval of Escondida Expand.
BHP Limited
27 November 2000
BHP APPROVES ESCONDIDA PHASE FOUR EXPANSION
BHP Limited (BHP) and its joint venture partners in the Escondida copper mine
in northern Chile today announced approval of the US$1.045 billion (A$1720m),
Escondida Phase IV expansion project.
A stable water supply for the project has been secured and development will
commence immediately with detailed engineering now 97 per cent complete. The
expansion will be complete within two years, BHP's share of the project
capital expenditure is US$600 million (A$989m).
The development represents a major brownfield expansion of a world class BHP
asset and supports the Company's strategy to add material and high value
growth to its Minerals portfolio. The development delivers significant
incremental value and earnings to BHP from a project with a low technical
risk.
The Phase IV expansion will increase ore processing facilities by 85 per cent,
resulting in an average increase in copper production of 400,000 tonnes per
annum and boosting average total production to 1.2 million tonnes per annum
over the first five years of full production
President BHP Copper Ken Pickering said the project represented an integral
component of the copper strategy within BHP and formed part of a broader mine
optimisation program at Escondida.
Mr Pickering said: 'Phase IV represents a high quality, low risk investment
providing important incremental value for Escondida. The development will
leverage synergies from the use of existing infrastructure and represents a
highly efficient deployment of capital.'
BHP is the operator and has a 57.5 per cent interest in the mine. Other joint
venture participants are Rio Tinto (30 per cent) Japan Escondida Corporation
(owned beneficially by Mitsubishi Corporation, Mitsubishi Materials
Corporation and Nippon Mining and Metals Company Limited, 10 per cent) and the
International Finance Corporation (2.5 per cent).
Further information can be found on our internet site: http://www.bhp.com
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