BHP Billiton is planning to expand its business operations into potash. They plan to maintain their Canadian business operation as they delay production of the large deposit until at least 2020.
Andrew Mackenzie, BHP’s new CEO, has clearly outlined his future plans in keeping options open. The company missed its forecasts because of the adjustments made on mining tax in Australia.
Large mining companies are under great pressure to sell off their under-performing assets as well as control spending. BHP has also reported that it plans to invest a total of $2.6 billion over the next 4 years on the digging of shafts at the Jansen potash project located in Canada.
The company’s management wants to enter the market at the right time for all shareholders. Mackenzie also outlined plans to cut more aggressively on exploration and capital spending. BHP has already put $40 billion of projects on hold since last year.
Related article: http://www.reuters.com/article/2013/08/20/us-bhpbilliton-earnings-result-idUSBRE97J05K20130820