BHP spent $279m on minerals exploration

miningmx.com -- Global resources giant BHP Billiton said on Thursday that in the half year ended December 2010, it spent US$279m on minerals exploration, of which $228m was expensed.

Releasing its exploration and development report, the group said grassroots exploration continued on copper targets in Chile and Zambia; nickel and copper targets in Australia; manganese targets in Gabon; and diamond targets in Canada.

Exploration for iron ore, coal, bauxite, potash and manganese was undertaken in a number of regions including Australia, Canada, South America and Africa.

Petroleum exploration expenditure for the period was $173m, of which $135m was expensed.

The group added that during the December 2010 quarter, a further $570m （BHP Billiton share） of capital expenditure was approved to underpin continued growth in Western Australia Iron Ore's production profile.

The investment expands on BHP Billiton's earlier pre-commitment of $1.73bn （BHP Billiton share） announced in January 2010 and will facilitate the ongoing development of port, rail and Jimblebar mine infrastructure.

"Industry wide cost pressure is being experienced across a broad range of projects and reflects stronger producer currencies, particularly in Australia, and underlying inflation on raw material and labour costs," it said.