Another billion bites the dust

Monday 13 May 2013

They’re falling like flies these mining projects. Following the merger of Xtrata and Glencore, it seems CEO Ivan Glasenberg was quite serious when described the great mining capex expansion as a mistake:

Glencore Xstrata has ceased work on its planned $1 billion-plus Balaclava Island Coal Export Terminal (BICET) development in Queensland effective immediately after a review of the project.

The mining company…cited poor coal market conditions, excess port capacity in Queensland, shipping limitations and concerns about the industry’s medium-term outlook.

Glencore has reviewed a suite of development projects in the Xstrata portfolio, with chief executive Ivan Glasenberg making it clear he is not keen on developing greenfields projects.

Another billion bites the dust.

About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific's leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.