BHP to Now Spend $3 Billion on Worsley Aluminum

The world’s largest mining company BHP Billiton is spending $3 billion on expanding the Worsley aluminum project in Western Australia.

This new budget is up 58% from the expected $1.9 billion it hoped to spend in 2008 for the expansion. The project completion has been delayed by six months given the complexity of expanding the refinery.

Chief executive officer of BHP’s non ferrous unit, Andrew Mackenzie said that there had been significantly lower levels of construction progress than previously anticipated, while broader inflationary pressures and the strengthening of the Australian dollar have also contributed to the cost increase.

The first production from the refinery is now expected in the first quarter of 2012 as opposed to it being competed in the first half of this year. The Melbourne based BHP Billiton owns 86% of the Worsley joint venture. Japan Alumina Associates own 10% and Sojitz Alumina owns the remaining 4% in the joint venture.

Mr Mackenzie said that BHP Billiton was confident that despite the delays and expenses the project would add value to the business in the medium to long term. It would allow low cost production in a string market and would confirm the position as one of the world’s leading alumina refineries. Aluminum prices have stayed high and risen steadily over the months this year.

Joel Scanlon

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Joel Scanlon

Joel relocated to Australia in 1995 from the United Kingdom and spent five years working in the mining industry as an exploration geotechnician. His role involved utilizing GIS mapping and CAD software. Upon transitioning to the North Coast of NSW, Australia, Joel embarked on a career as a graphic designer at a well-known consultancy firm. Subsequently, he established a successful web services business catering to companies across the eastern seaboard of Australia. It was during this time that he conceived and launched News-Medical.Net. Joel has been an integral part of AZoNetwork since its inception in 2000. Joel possesses a keen interest in exploring the boundaries of technology, comprehending its potential impact on society, and actively engaging with AI-driven solutions and advancements.


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