Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
The outlook is uncertain for BHP Billiton forging ahead with its remaining expansion plans for the Jansen potash project in Canada, reports The Australian.
BHP’s chief executive Andrew Mackenzie made comments to Australian investors on Wednesday and Thursday which cast doubt on the company’s commitment to the Jansen development.
Mackenzie told investors again about BHP’s $4 billion decrease in capital expenditures for 2014 and, during the following two to three years, another $15 billion reduction.
A JP Morgan analyst posited that, despite Mackenzie’s comments to them about refreshing Jansen expenditures, the project would likely be shelved consistent with the company’s overall plan to decrease its capex.
PotashCorp of Saskatchewan said a year ago that it wasn’t surprising BHP would slow down on Jansen since potash supplies are in surplus.
Image: BHP Billiton
