MELBOURNE (dpa-AFX) - BHP Billiton Plc (BHP, BBL, BLT.L, BHP.AX) said it will investigate an alternative, less capital-intensive design of the Olympic Dam open-pit expansion, involving new technologies, to substantially improve the economics of the project. Hence, it will not be ready to approve an expansion of Olympic Dam before the Indenture agreement deadline of December 15, 2012.
The company stated that it will discuss the implications of this decision for the Indenture agreement with the South Australian Government in the coming months.
According to BHP Billiton chief executive officer Marius Kloppers, current market conditions, including subdued commodity prices and higher capital costs, had led to the above decision.
BHP Billiton chief executive Non-Ferrous, Andrew Mackenzie, commented, 'The South Australian Government has been fully supportive of Olympic Dam and has created an environment that is highly conducive to business investment. We have been very much encouraged by their attitude to business development and the Olympic Dam expansion project.'
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