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6 March
Melbourne,
Dow Jones
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MELBOURNE (Dow Jones)-Mining giant BHP Billiton (BHP) has received final regulatory approvals for a US$2.03 billion expansion of its Worsley aluminum refinery in southwest Australia, which could see it boost production by one million tons a year by the end of 2010. The Melbourne-based miner was given Western Australian state government approval to boost production at Worsley to 4.7 million metric tons a year, up from a previous approval to go to 4.4 million tons, a spokesman for the state’s Environmental Protection Authority said Thursday. BHP board approval of the expansion, which has been delayed as costs soared, is now needed for the project to go ahead. A BHP spokeswoman declined to comment on a report in The West Australian newspaper that a decision is likely within three months. The newspaper didn’t say where it got its information. Costs of expanding the 3.4 million tons-a-year refinery have soared and resulted in delays to a decision, as skilled labor shortages and raw material prices hit the resource-rich state. In its first-half report last month, BHP said its cost of growing Worsley, of which it has an 86% stake, would likely be US$1.75 billion, up 75% from US$1 billion estimated six months earlier. First production is expected at the end of 2010, BHP said. BHP’s partners in the project are Japan Alumina Associates and Sojitz Alumina Pty. | |||