Melbourne — BHP Billiton said on Thursday it had
lifted a declaration of force majeure at its Escondida copper mine in
Chile, more than a month after a costly strike came to an end.
BHP declared force majeure at the mine in early February at the start of a labour strike that lasted 43 days and cost the world’s biggest mining house about $1bn.
"I’m pleased to say that our copper FM (force majeure) is lifted as of today. We are back to normal," BHP’s chief commercial officer, Arnoud Balhuizen, told reporters after addressing a mining luncheon.
Force majeure remained in place on shipments from its coal mines in Australia’s Queensland state, where a cyclone in late March knocked out rail haul lines, Balhuizen said.
"We still need a bit of time to get to full normal shipments in coal," he said.
Belt boost
BHP also said China’s multibillion-dollar Belt and Road Initiative could deliver a major boost for commodities and would add about 150-million tons to global steel demand.
The plan to develop infrastructure and rebuild ancient trading routes from China to Europe overland and by sea has seen projects initiated worth about $1.3-trillion, according to Melbourne-based BHP, the biggest exporter of coking coal and the third-largest iron ore supplier.
Investments worth $313bn-$502bn could be funnelled to 62 Belt Road countries over the next five years, Credit Suisse said last month.
"Everywhere where we see the infrastructure being built, on the back of that there will be economic development that will trigger copper demand, which will trigger energy demand," BHP’s chief commercial officer, Arnoud Balhuizen, told reporters Thursday in Melbourne.
"Steel produced in China will be used along the road, and that of course is good for demand for our commodities."
BHP shares fell 0.7% to A$23.73 on Thursday in Sydney, extending their decline this year to 5.3%.
The "One Belt One Road" initiative promised "huge demand for resources, services and technology", and was "an opportunity like no other", Balhuizen said earlier in a speech.
BHP gets about 43% of full-year revenue from China and a total of at least 68% from Asia, according to data compiled by Bloomberg.
China’s plan, lauded by President Xi Jinping as a "project of the century", has the potential to generate about 120-million tons of crude steel demand, according to Citigroup.
Increased appetite from infrastructure will support steel even as there’s a slowdown in China’s housing sector, Templeton Emerging Markets chairman Mark Mobius said last month.
Indian Prime Minister Narendra Modi’s plans for rural electrification, which aim to supply power to every citizen by 2019, and the drive to provide more affordable housing, would also boost commodities and are likely to "have a material impact on demand for coal, iron ore, copper and petroleum", Balhuizen said in his speech.
BHP sees global demand for potash growing at 2%-3% a year through 2030, as the world’s population rises and crop demand swells by 50% by 2050, he said.
BHP may seek board approval for its Jansen potash project in Canada as early as next June, the producer said last month.
Reuters and Bloomberg
BHP declared force majeure at the mine in early February at the start of a labour strike that lasted 43 days and cost the world’s biggest mining house about $1bn.
"I’m pleased to say that our copper FM (force majeure) is lifted as of today. We are back to normal," BHP’s chief commercial officer, Arnoud Balhuizen, told reporters after addressing a mining luncheon.
Force majeure remained in place on shipments from its coal mines in Australia’s Queensland state, where a cyclone in late March knocked out rail haul lines, Balhuizen said.
"We still need a bit of time to get to full normal shipments in coal," he said.
Belt boost
BHP also said China’s multibillion-dollar Belt and Road Initiative could deliver a major boost for commodities and would add about 150-million tons to global steel demand.
The plan to develop infrastructure and rebuild ancient trading routes from China to Europe overland and by sea has seen projects initiated worth about $1.3-trillion, according to Melbourne-based BHP, the biggest exporter of coking coal and the third-largest iron ore supplier.
Investments worth $313bn-$502bn could be funnelled to 62 Belt Road countries over the next five years, Credit Suisse said last month.
"Everywhere where we see the infrastructure being built, on the back of that there will be economic development that will trigger copper demand, which will trigger energy demand," BHP’s chief commercial officer, Arnoud Balhuizen, told reporters Thursday in Melbourne.
"Steel produced in China will be used along the road, and that of course is good for demand for our commodities."
BHP shares fell 0.7% to A$23.73 on Thursday in Sydney, extending their decline this year to 5.3%.
The "One Belt One Road" initiative promised "huge demand for resources, services and technology", and was "an opportunity like no other", Balhuizen said earlier in a speech.
BHP gets about 43% of full-year revenue from China and a total of at least 68% from Asia, according to data compiled by Bloomberg.
China’s plan, lauded by President Xi Jinping as a "project of the century", has the potential to generate about 120-million tons of crude steel demand, according to Citigroup.
Increased appetite from infrastructure will support steel even as there’s a slowdown in China’s housing sector, Templeton Emerging Markets chairman Mark Mobius said last month.
Indian Prime Minister Narendra Modi’s plans for rural electrification, which aim to supply power to every citizen by 2019, and the drive to provide more affordable housing, would also boost commodities and are likely to "have a material impact on demand for coal, iron ore, copper and petroleum", Balhuizen said in his speech.
BHP sees global demand for potash growing at 2%-3% a year through 2030, as the world’s population rises and crop demand swells by 50% by 2050, he said.
BHP may seek board approval for its Jansen potash project in Canada as early as next June, the producer said last month.
Reuters and Bloomberg
No comments:
Post a Comment