BHP ditches another three coal projects
BHP Billiton (ASX, LON, NYSE:BHP) has added three new names to its growing list of shelved coal mine projects as defers its Red Hill and Saraji East coal projects, reports Mining Australia.
The miner has also stopped research into its underground coking coal mine near Moranbah, where it had planned to mine 14 million tonnes of coal annually.
The project was expected to cost the company more than $3 billion, given average industry project costs.
BHP blamed falling coal prices and weaker Chinese growth expectations for this decision, which follows the cancellation of plans to expand its Olympic Dam copper and gold mine in South Australia, as well as its Port Hedland iron ore harbour expansion in Western Australia.
On Monday, fellow miner Rio Tinto (ASX, LON:RIO) also announced more job cuts across its coal mines in Queensland as the state has raised its royalty rates and the commodity’s price continues to fall.
Image Flicker Commons