BHP may be gearing up for Olympic Dam investment

BHP may be gearing up for Olympic Dam

BHP could once again be gearing up to ignite its mining assets in Australia

Some Australian mining companies are showing signs they are changing their tack when it comes to investing once again in the sector.

BHP has been on the radar recently with a review of its capital expenditure the main topic of conversation. BHP’s overall capex in 2015 dropped to $10.4 billion.

However, despite the cut backs, it seems, BHP could once again be gearing up to ignite its mining assets in Australia.

BHP was able to raise $6.5 billion despite concerns about the current environment and were able to amass more than $13 billion in orders worldwide.

Also, after 18 months of consideration by ex-Glencore executive Mick Davis is showing signs of being close to pressing the button on a maiden investment for his $5.6 billion X2 fund. He could also be bidding forRio Tinto`s coal assets in Australia`s Hunter Valley – a deal that is said to be worth about $3 billion. Queensland based New Hope last month purchasded Rio’s 40% stake in the Bengalla coal operations while Glencore, which operates coal mines neighbouring Rio’s Hunter Valley mines, is itself in divestment mode.

So despite the lack of positive news in the sector and the lack of public information around these coal asset deals, there is an underlying trend for some of the bigger ‘cashed-up’ companies to take advantage of the weaker market to restructure their own assets.

iMINCO Project News Queensland

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