Xstrata to Spend $23bn on Expansion

Xstrata will spend £14.5bn ($23bn) over the next six years on mining operations and expansion, with a focus on coal, copper and nickel projects.

 

The firm said that its expansionary capital expenditure is expected to be $6.8bn for 2011, with investment primarily in coal, copper and nickel projects.

 

The expenditure comprises 20 approved major projects accounting for $14bn, 14 projects that are due for approval in the next 12 months accounting for $7.5bn, and $1.3bn to fund more than 25 projects in scoping and feasibility development.

 

Xstrata CEO Mick Davis said that the firm has accumulated the world-class options, alongside opportunistic M&A, demonstrating the core strengths of opportunism, flexibility and entrepreneurialism.

 

"By investing in these organic options through the downturn and triggering, early in the recovery, the commencement of projects which had completed their feasibility studies, Xstrata is once more positioned to pre-emptively deliver industry leading growth, resulting in the next transformation of our business," added Davis.

 

Source:

Crusher