In its annual report released today, included among BHP's strategic goals, was the operation of both its WA and Venezuela HBI plants at their design capacity.

BHP is in the middle of a $46 million technical review after writing down the entire value of the $2.5 billion plant in May.

Additional process development trials began at around the same time and an assessment is expected to determine the projects future before the end of the year.

BHP's annual report suggested that the operation will not be mothballed when it said that preliminary indications of these trials are positive.

Also listed among BHP's strategic goals was the increase of copper production by 50% over the next five years with expansions, expanding its operating bases at the Ekati diamond mine in Canada, entering the nickel industry through its Gag Island nickel project in Indonesia and focusing on laterite deposits, pursuing coal industry consolidation and cost reductions and optimising the performance of its Cannington silver mine in Queensland.

BHP said it also plans to maintain its position as a leading global player in the iron ore industry where it will continue to pursue cost reductions.

The development of Mining Area C in the Pilbara region of WA will result in the new mine being commissioned in the 2001 financial year at a total cost of less than $50 million.

Meanwhile, it is currently reviewing its market risk policy which covers price risk inherent in commodity revenues and costs and its rates for interest foreign exchange and freight.

The policy is set and managed by the price risk management committee which includes the chief executive, chief financial officer and president of each of the main businesses.

BHP said the review, which includes procedures for market disclosure of hedging positions, is expected to be completed by the end of calendar 2000.

 

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