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BHP's Olympic run stalledBARRY FITZGERALD
October 7, 2009 - 12:55PM
Production at Australia's biggest underground mine, BHP Billiton's Olympic Dam operation in outback South Australia, has been hit by a mechanical failure in the biggest of its two haulage shafts.
The mine last year hauled close to 10 million tonnes of copper, uranium and gold ore to the surface for treatment.
The value of its production was $1.8 billion (193,000 tonnes of copper, 4000 tonnes of uranium and 108,000 ounces of gold).
The production setback comes as BHP gets close to making a decision on converting Olympic Dam from an underground mine to one of the worlds biggest open-cut operations at a cost of $15-$20 billion.
The breakdown in the Clark shaft means that BHP will struggle to continue to haul the massive volumes of ore - from depths of below 400 metres - required to keep the surface treatment plant and processing facilities at full capacity.
BHP is still assessing the time it will take to return the Clark shaft to production and has told the stock exchange that it was unclear what impact the incident would have on production. A secondary haulage shaft is now being used.
BHP told the exchange that the mechanical failure occurred at 10.30pm yesterday. The haulage system used at Olympic Dam is fully automated, and no-one was injured in the incident.
''A full investigation is underway to determine the cause of the failure and the extent of the damage,'' BHP said.
''The safety of our workforce will take priority in determining any re-start of haulage operations,'' it said.
Safety at BHP operations has come under scrutiny following five deaths at its iron ore operations in the Pilbara in the June year, prompting an independent review under West Australian safety legislation.
Can anyone tell me where BHP is going??
For the trade to set up to my liking and provide me with an entry I want to see an attempt to fill the gap but price to fail around $41 (but the set up will still be valid if the gap is closed but we need to see a very weak close on the bar that closes the gap).
BHP Billiton's Falkland Island enterprising interests could be major, even for the big Aussie: http://www.fihplc.com/investmentinfogl/index.php?section=3
Another oil minnow is the first to drill off the Falkland Islands, Desire Petroleum [there are over 420 islands within the Falklands]. This link gives clues to the good and bad sides in this environment: http://www.desirepetroleumshares.co.uk
http://au.news.yahoo.com/thewest/a/...o-suspend-kwinana-nickel-refinery-production/BHP Billiton has been forced to suspended production of nickel briquettes at its Kwinana refinery after running out of hydrogen.
With the onsite hydrogen plant broken and the usual back-up supplies from BP unavailable, BHP had no choice but to close down refinery operations on Monday.
It was not clear last night how long the refinery would remain shut and what impact it would have on this year's production targets for BHP's Nickel West unit.
Rumours in the UK (UK FT, The Times and Daily Mail) expect BHP Billiton to bid for the gas company, BG Group: http://www.bg-group.com
http://www.ft.com
Rumours of this possible takeover have been long running and have been repeated again this week.
Following on with the BHP interest in the Falkland Islands. The following article gives a little more information; remembering BHP is interested is in Falkland Oil and Gas: http://www.desirepetroleumshares.co...e-result-of-the-first-well-is-due-within-days
Disclaimer: I have interests in all companies mentioned above, including all the explorers in the Falkland Islands.
BHP Billiton's Falkland Island enterprising interests could be major, even for the big Aussie: http://www.fihplc.com/investmentinfogl/index.php?section=3
Rockhopper Exploration has reported an oil strike off the Falkland Islands. This is not an area that BHP has an interest as theirs is with Falklands Oil and Gas Limited.
This strike does look positive for BHP as they are involved in the area already.
Something to look at with old Henry causing problems on home shores.
(I have an interest in all the companies exploring in the Falklands)
NB. BHP shares are rising in London. **** Hope you're not fast asleep.
BHP shares have risen 3% on the LSE. The way for the big guy to avoid some of Henry's tax is to put more efforts into the Falkland venture reported to have around 3 billion barrels of oil around the Falkland Islands.
Avoiding new expensive ventures in Australia may be the name of the game if Henry wants most of the profits.
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