BHP Billiton on verge of iron ore capacity expansion
Australias
BHP Billiton plans to increase its
iron ore production capacity to 118 million tons in the second half of 2006 by investing close to $500 million in its rapid growth project in Western
Australia.
An additional $500 million investment, which would allow the company to increase its capacity to 150 million tons, is also on the drawing board.
BHP has been contemplating the expansion for the past 12 months. Strong demand from Asia, particularly
China, prompted
BHP to undertake feasibility studies for the project.
BHP has not yet declared price hikes for the coming fiscal year, but many anticipate the price increases will exceed 50%.