It is reported that BHP Billiton could buy anything it wants if overseas media reports on possible acquisition targets for the world biggest miner are to believed.

Fresh from last week spruiking by overseas media of the potential for a USD 6 billion bid for US coal company Walter Energy, London Sunday Times yesterday had another potential target for BHP: Brazilian iron ore producer Ferrous Resources.

The report said BHP started talks to buy the company earlier this year. It could offer USD 3.1 billion for the Brazilian miner. Failing that BHP could settle for buying a stake in the company.

Ferrous is an iron ore developer focusing on development of an export iron ore business in the "Iron Quadrangle" of Brazil Minas Gerais state. Ferrous has big ambitions having said it plans to become one of the five biggest iron ore miners in the world within a few years.

BHP already has a presence in Brazil. Along with Brazil Vale, it earlier this year gave the go ahead for a USD 3.5 billion expansion of their jointly owned Samarco iron ore pellets operation in the country. In Western Australia's Pilbara, BHP is planning to boost production from 155 million tonnes a year to 240 million tonnes.

BHP ability to make what for it would be bite sized acquisitions is not doubted. But the talk of more acquisitions comes after the group said it would spend USD 20 billion earlier this year on the US shale gas industry and its pledge to spend USD 80 billion over five years on expanding its existing operations. Included is expansion of the Olympic Dam copper, uranium and gold mine in South Australia's outback.

BHP received environmental approval for the project last week but is not due to seek board approval until early next year. Analysts believe the cost of the staged expansion could exceed USD 30 billion.

(Sourced from www.smh.com.au)