BHP Billiton has had some very important news over the last few days, since their results release that has been capturing most peoples attention. First, a rather innocuous piece about the development of the Western Australian Iron Ore (WAIO) operations harbour. Yes, really. It turns out that the aggressive roll out of the Outer Harbour. The work has therefore been "slowed". Now I have never been to Mt. Whaleback where the ore comes from, and perhaps I will never get there. The same is true for Port Headland, the harbour in question. I have however seen pictures of Mars just this morning, it looks devoid of grass, trees and all water sources. There is no life, pretty much like the Arsenal and Western Province trophy cabinets. Ouch. But basically BHP Billiton have decided to step back. Right now, the industry does not need massive expansion. They are big enough to be able to do that.
I also read an interesting mainstream piece, Kloppers Sees Long-Term Price Decline For BHP's Commodities. Not that good I guess. BUT. This is important, the company makes these strategic calls from time to time, and just two days ago there was an announcement from the company: Sale of Yeelirrie uranium deposit. With Germany and Japan rethinking their nuclear plans in the short term, this is a longer term strategic plan from the company. Or, as part of the broader Olympic Dam pull back, this asset was acquired in the WMC transaction, perhaps non-core is the answer.