Another billion bites the dust

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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.

Comments

  1. what would happen if the Aud reaches 0.7/0.6 (my wet dream) ? that could help the mining industry tremendously isn’t it ?

    • What about those poor foreign investors who have bought into our bubble priced housing? Have you no heart, they will lose big time! 😉

      • russellsmith55

        How did you get the figure $2+ per litre? I’ve been wondering what would happen if our dollar fell that far but had no idea how to figure it out or where to find out.

      • Alex Heyworth

        Depends on what part of Australia you live in. If the dollar was down to $US0.70, ULP in Darwin and in many parts of country Australia would be $2 a litre. Not in the big capitals, though.

    • Swings and roundabouts. Petrol will be massively more expensive, as would Amazon purchases, and Bogan holidays to Bali/Thailand.

  2. And I hear that Wiggins island coal project (WICET) in Gladstone harbour itself is looking shakier.