BHP Billiton said it will focus on creating tier-one mines as the mining industry heads towards large-scale projects.
BHP Billiton CEO Marius Kloppers said that miners today are looking more at developing numerous resources in the one basin, allowing for simpler portfolios.
“Looking forwards, we expect multiple iron ore expansions, multiple coking coal expansions in
the Bowen Basin, multiple expansions in Olympic Dam, multiple additional projects in Escondida,
multiple potash projects, and so on,” Kloppers said.
“We try to run a simple portfolio of large assets, remove the smaller assets from the portfolio.”
BHP is the world’s largest mining company and has grown capex (capital expenditure) investment by about 20% every year since 2001, with an emphasis on organic growth instead of acquisitive.