Top miners to spend $244b in the next two years

The world’s largest mining companies are planning to spend over $244 billion on expansions to 2015, reports Bloomberg Television’s “The Pulse.”

Despite Glencore Xstrata’s (LON:GLEN) CEO Ivan Glasenberg’s recent call for austerity in the industry to end an oversupply in mineral markets, top miners are reportedly set to spend just 2.4% less than in the previous three years.

Only in Australia, home of giant mining companies BHP Billiton (ASX, LON, NYSE: BHP) and Rio Tinto (ASX, LON: RIO), business investment rose last quarter driven by strong mining spending, according to the Bureau of Statistics.

“The capital spending numbers confirm mining investment isn’t headed for a sharp decline in coming quarters,” Katrina Ell, an economist at Moody’s Analytics in Sydney, was quoted as saying last month.

After shelving projects worth about $68 billion last year, BHP —the world’s No.1 mining company— decided in August to go ahead with a $2.6 billion investment in its Jansen potash project in Canada.

And Rio Tinto, the world’s second biggest producer of sea-traded iron ore after Brazil’s Vale (NYSE: VALE), is injecting a further $5 billion into its Australian operations to take annual capacity to 360 million tonnes.

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