According to foreign reports, industry analysts and investors, subject to the impact of rising costs and uncertain market prospects, the world's mining giant BHP Billiton may be the first phase of its approximately $ 10 billion-scale iron ore port expansion project scale halved,to reduce capital expenditure.

According to Reuters, in Western Australia, the Outer Harbour project is BHP Billiton one of the three major projects in the $ 80 billion investment plan, but forced by pressure from shareholders, BHP Billiton is to reduce the scale of these investments, lower investment rate. Shareholders are more likely to get higher dividends, and the expansion of the repurchase scale, rather than invested heavily in development projects will not bring short-term returns.

In February of this year, BHP Billiton is committed to advance into the $ 779 million to establish an annual throughput of 100 million tons of the external port, and said that this project will be the fourth quarter of this year to be fully approved.

Five industry analysts and the two investors said today that Jimmy - Wilson (Jimmy Wilson), a person in charge of incoming BHP Billiton's iron ore operations will have to crop the Outer Harbour project. UBS analyst Green - labor Hancock Glyn Lawcock said: "He has been advised of the Outer Harbour project will need to cut into a smaller project."

They expected that the logical result of the first phase will expand the scale from 100 million tons per year down to 50 million tons per year. Analysts and investors say, taking into account the BHP Billiton has a 50 million tons per year of rail capacity surplus, so the company may find ways to improve the existing mine capacity to use this part of the capacity, and then you only need 50 million tons of new port capacity.


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