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BHP won't guarantee Olympic Dam expansion

by: Sarah MartinFrom: The Australian
November 13, 2012 3:53PM

BHP Billiton chief executive Marius Kloppers has given no guarantee the mining giant will proceed with its $30 billion Olympic Dam expansion after receiving a four-year extension to government approvals today.

The South Australian Labor government has granted the miner an extension until 2016 to the existing indenture agreement, in line with the project's environmental approvals.

The government had earlier this year warned BHP its board must proceed with the project by December or its approvals process would have to start from scratch.

In May, Mining Minister Tom Koutsantonis said he had the discretion to grant BHP an extension to its approvals but he was "not inclined to do so" unless there was a drop in commodity prices.

"I will not grant BHP an extension just because they may want one," Mr Koutsantonis said at the time.

Premier Jay Weatherill said it was the "proper decision" to not grant an extension to approvals beyond December.
But in August the miner indefinitely shelved the project.

Today, Mr Kloppers said BHP would proceed with a $650m spending program at the site in the state's remote far north, but there was no commitment to the project ever going ahead.

"Unfortunately there is no guarantee that these things are successful, however we are committed to a large investment program in order to make this a reality," he said.

Mr Weatherill said the spending commitment was "a substantial step" towards an eventual mine expansion.

Mr Kloppers said the company wanted to prove up new heap leaching technologies that could be used to expand the copper, gold and uranium mine.