Mining giant BHP Billiton has announced it has elected to shelve the $30 billion expansion of its Olympic Dam expansion in South Australia.

 

The company announced that due to current market conditions and subdued commodity prices, it would seek less capital-intensive methods of expanding its operations in the site.

 

“As we finalised all the details of the project in the context of current market conditions, our strategy and capital management priorities, it became clear that the right decision for the Company and its shareholders was to continue studies to develop a less capital intensive option to replace the underground mine at Olympic Dam,” BHP Billiton CEO Marius Kloppers said.

 

“ Value is always our primary consideration. We believe today’s decision reflects an appropriate, prudent and disciplined course of action.”

 

Mr Kloppers said that despite the company’s decision to shelve the expansion project, the market for copper remains strong but will wait to ‘find the right solution to unlock this resource.’

 

South Australian Premier Jay Weatherill said that discussions between the Government and BHP Billiton will commence as soon as possible, but admitted that it was a ‘major disappointment for South Australia and the nation’.

 

“It is also a particular disappointment for the regional towns like Roxby Downs, Port Augusta, Port Pirie and Whyalla who had started to experience the benefits in activity that this expansion was bringing,” Mr Weatherill said.