BHP Billiton (NYSE:BHP) is evaluating an option to develop a new iron ore deposit in Australia to replace the lost tonnes as operations age and reserves decline. In a report published Thursday, Reuters said that the Melbourne-based mining firm is looking to tap a deposit called South Flank near the company’s existing Mining Area C operation. “We are currently studying a number of options to sustain our supply chain capacity for the future, and the South Flank deposit is one option under consideration,” according to BHP spokeswoman. ADRs were 4.4% lower in recent morning trade, below the midpoint of the 52-week range of $18.46 – $45.06.
The stock is down 5.23% or $1.55 after the news, hitting $28.1 per share. About 3.39 million shares traded hands. BHP Billiton Limited (ADR) (NYSE:BHP) has declined 9.47% since November 2, 2015 and is downtrending. It has underperformed by 10.18% the S&P500.
BHP Billiton Limited discovers, acquires, develops, and markets natural resources worldwide. It operates through Petroleum and Potash, Copper, Iron Ore, and Coal segments. The company explores for, develops, produces, and markets oil and gas with operating assets in the deep water Gulf of Mexico, Western Australia, Trinidad and Tobago, the United Kingdom, and Pakistan; and owns the Jansen potash project located in the Saskatchewan potash basin in Canada.
It also explores for copper, silver, lead, zinc, molybdenum, uranium, gold, iron ore, and seaborne metallurgical and thermal coal. The company was formerly known as BHP Limited and changed its name to BHP Billiton Limited in July 2001. BHP Billiton Limited was founded in 1851 and is headquartered in Melbourne, Australia. BHP Billiton Limited operates as a subsidiary of BHP Billiton Group.
Source: sonoranweeklyreview