BHP Billiton (ASX:BHP) is set to expand iron ore pellets operations in Brazil with Samarco, the company the mining giant jointly owns with Brazilian company Vale.
Fairfax newspapers today report the expansion will increase Samarco’s annual iron ore pellet production capacity by 8.3 million tonnes to 30.5 million tonnes, and will cost more than the expected $US2.86 billion.
Samarco is a low-cost supplier of iron ore pellets, having completed its latest expansion just before the global financial crisis hit.
Just last week, BHP’s chief, Marius Kloppers, also said the global miner would be interested in becoming a liquefied natural gas (LNG) operator in the long term.
In the six months to 31 December 2010 BHP Billiton recorded a net profit of $10.5 billion.
