December 02, 2008

BHPB to boosts exploration in Indonesia and Russia

Bloomberg reported that BHP Billiton Ltd boosting exploration in countries including Indonesia, the Philippines, Russia and Guatemala on rising demand for nickel used in stainless steel. BHP in a presentation to media in Australia said that “We are making a significant investment in exploration activity.''

Mr Illtud Harri spokesman for BHP's London based said in a telephone interview that a new mine at Ravensthorpe in Western Australia will begin shipping to the Yabulu refinery in Queensland in the first quarter. Ravensthorpe will have annual capacity of about 50,000 tons of nickel contained in concentrate.

Mr Harri said another new mine at Cliffs also in Western Australia will start operating in the first half of next year. No production forecast has been given. He added that BHP which accounts for 16% of global nickel concentrate supply plans other projects in Western Australia including the Perseverance Deeps extension to the Leinster mine and two further expansions to the Mt Keith mine, the world's largest open cut nickel project.

The price of nickel has more than doubled in the past two years because of increased demand for stainless steel products in China, the world's largest consumer of the alloy. Delays and cost overruns at new mines helped push nickel to a record AUD 51,800 a metric ton on the London Metal Exchange on May 9th 2007.