Lure of Anglo’s copper mines could test BHP’s spending resolve
BHP needs to offer at least a 40% premium over Anglo's share price for a new takeover bid, but its CEO has committed to spending discipline.
Australian- and UK-based uber-miner BHP Billiton is moving ahead with its Jansen potash project in the Canadian province of Saskatchewan. A feasibility study is now scheduled for what is a proposed mine some 140 kilometres east of Saskatoon. An environmental impact statement for the mine has already been filed.
What’s interesting here is the failed takeover battle BHP had with PotashCorp; there were doubts raised at the time about BHP’s commitment to the mine in question. If the takeover had been completed, there were concerns the project wouldn’t go ahead.
Well, the takeover failed – at least the first overture, if you will – and now BHP is about to spend $240 million on developing the project in a province where BHP has exploration rights covering 14,500 square kilometres. The money is going towards ground freezing to allow a shaft as well as extensive studies to look at capital expenditure commitments.
