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BHP Billiton (BHP): H2 profit before items -35% to $7.16B vs. consensus of $6.96B. Abandons $20B...

BHP Billiton (BHP): H2 profit before items -35% to $7.16B vs. consensus of $6.96B. Abandons $20B Olympic Dam copper expansion and will look at a "less capital intensive option." Won't approve any new projects until at least mid-2013. It's the biggest sign of how China's slowdown has stalled the global mining boom. (PR)
Comments (11)
  • Australian Dollar and real estate are big shorts.

     

    When high school dropouts get $200k annual salaries, it's just the same bubble as entry level investment bankers getting $500 a year.
    22 Aug 2012, 03:28 AM Reply Like
  • The decision will severely affect the state of South Australia, it throws doubt on the expected revenue expected from the Resource Rent Tax etc etc, but is about the only correct decision made by BHP for years.
    22 Aug 2012, 06:15 AM Reply Like
  • Yes it is a tough decision to make....everyone wants it to happen...their salaries depend on it...so it really is tough to stop it...but I think it is a good one....the copper will be there in another 10 years if needed....
    22 Aug 2012, 07:35 AM Reply Like
  • boom and bust cycles. capitalism 101, you can't escape them :). what the Aussies need now is another coal tax to cripple the mining industry :).
    22 Aug 2012, 08:50 AM Reply Like
  • The speculation prior to this included whether the Australian gov't was going to block BHP's move to slow or abandon the project. Not clear if this is a fait accompli...
    22 Aug 2012, 11:47 AM Reply Like
  • Odd considering copper is at $3.45. Makes FCX an interesting pick now.
    22 Aug 2012, 01:18 PM Reply Like
  • It doesn't hurt CCJ either. The expansion would have boosted Olympic Dam's uranium production too.
    22 Aug 2012, 01:52 PM Reply Like
  • Dr. Copper speaks: "an ill wind blows!"
    22 Aug 2012, 02:22 PM Reply Like
  • More clear evidence of global slowdown and global economic weakness.
    22 Aug 2012, 06:46 PM Reply Like
  • Develop the mine and drive copper towards 3. Shut it and copper trends towards 4.
    22 Aug 2012, 06:49 PM Reply Like
  • keeping in mind this expansion is about 6-10 YEARS out.
    22 Aug 2012, 07:29 PM Reply Like
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