The decline in iron ore prices, BHP Billiton to invest tens of billions of dollars in the expansion of Western Australia's Pilbara region iron ore program is at risk.
 
BHP Billiton, the newly appointed iron ore operations president Jimmy Wilson said the project development costs are increasing as well as ore prices dropped to the order and speed of project development will lead to future growth to re-examine. The company is facing challenges, but still believe that the long-term attractiveness of iron ore, the commitment to building projects are under way.
 
BHP Billiton Port Hedland Expansion completion of the project is expected to cost nearly $ 20 billion, is one of the three cost more than $ 10 billion project. The company spokesman said that the Board has not yet decided whether to postpone the Port Hedland outer harbor expansion project to make. However, given the cost of these projects is expected to increase, at least one project will be delayed, the company is to divert attention to cost-cutting aspects.
 
In May, BHP Billiton Port Hedland outer harbor construction project approved by the government environment, the first phase of construction, including the 4 km long sea pier, a four-berth pier and a 32 km long dredged channel, the initial annual shipping capacity increase in 5000 million tons. However, analysts said BHP Billiton might first focus on the existing Port Hedland inner harbor expansion project development.
In October last year, spot iron ore prices fell to nearly two and a half years since the low of $ 115 / ton, but is still historically high level, lower mining costs, Rio Tinto, the world's largest mining profits are still impressive.
 
However, the development of long-term ore price decline is expected and high operating costs mean that the return on investment of the new expansion project began to decline, mining companies need to reconsider some of the projects. Rio Tinto said earlier that as much as possible ways to remove the bottleneck of the Pilbara iron ore operations, some analysts believe that Rio Tinto may suspend expansion plans. Australia's third-largest iron ore manufacturers FMG5 month also claimed that the expansion will be suspended after an annual production capacity expanded to 155 million tons, to focus on debt repayment.



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