27th Jun 2016 04:49
MELBOURNE (Alliance News) - BHP Billiton PLC on Monday outlined its approach to exploration which will see the company target opportunities across copper and oil to enhance its long-life, tier 1 portfolio.
Next financial year, the company plans to invest about USD900 million in exploration, which represents 18% of its overall capital budget.
Speaking at Citigroup's Mining Exploration Day in Sydney, BHP Billiton Head of Geoscience, Laura Tyler, said, "We are investing at a time when most in our sector continue to reduce discretionary spend."
"We are also challenging existing paradigms with a scientific based and disciplined approach to exploration. We have reduced exploration operating costs by 70% since 2013, and this year we have increased the targets tested by 44%," Tyler, said.
BHP Billiton noted that its petroleum exploration programme is focused on three conventional deepwater basins in: the Gulf of Mexico, the Caribbean (in Trinidad & Tobago and Barbados), and the Northern Beagle sub-basin off the coast of Western Australia.
The company said that it commenced drilling in Trinidad and Tobago and has secured an additional rig which will soon commence drilling in a prospective block north of its Shenzi operations in the Gulf of Mexico.
BHP Billiton noted that its copper exploration program is targeting tier 1 greenfield mineral deposits, with a particular focus on copper porphyry and skarn deposits in Chile, Peru and the south west of the US, sedimentary hosted copper deposits in the north of Canada, and Iron Oxide Copper Gold deposits in South Australia's Stuart Shelf, adjacent to Olympic Dam.
The company said that it will focus on greenfield exploration with annual budget of above USD60 million from fiscal year 2016 to fiscal year 2018. Its greenfield discoveries can deliver copper for USD0.02 to USD0.04 per pounds, 44% increase in targets tested in fiscal 2016.
Copyright RTT News/dpa-AFX
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