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BHP approves investment to extend life of Spence

17 August 2017 09:02

BHP Billiton has approved capital expenditure of US$2.46 billion for the Spence growth option at the Spence open-cut copper mine in northern Chile, which will extend the mine life by more than 50 years. BHP chief executive Andrew Mackenzie said the SGO project supported BHP's strategy to deliver near-term, valuable copper production.

In the first 10 years of operation, incremental production from SGO will be approximately 185 ktpa of payable copper in concentrate and 4 ktpa of payable molybdenum, with first production expected in the 2021 financial year.

The current copper cathode stream will continue until the 2025 financial year.

The project will convert 1.3 Bt1 of Measured and Indicated Mineral Resources to hypogene sulphide Ore Reserves. SGO was rigorously evaluated using BHP's capital allocation framework and, at mid-case consensus prices, has an expected internal rate of return of 16 per cent and an expected payback period of 4.5 years from first production.

At 9:02am: (LON:BLT) BHP Billiton PLC share price was +10p at 1378p

Story provided by StockMarketWire.com

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